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Asia Pacific Region Will Show Strong Growth of revenues in 2012

STR Global forecasts Asia Pacific hotels to show strong revenue gains this year. RevPAR (revenue per available room) will grow in all major markets of the region.

Supply on the market also grows in a fast tempo. This year the supply of hotels in Beijing, Singapore and Hong Kong will grow between 1.1% and 2.5%. However, demand currently grows faster than supply and this year it may show an increase of 1.7% and 3.8%. The growth of demand slowly stabilizes after skyrocketing 2010 with the growth of 22.8% and 2011 with more modest results (+6.2%). The only market that may face a small decline in occupancy is Singapore, where the growth of demand is somewhat slower than supply.

Hotels in Beijing may feature the growth of both occupancy and ADR by approximately 4.5%. This will make RevPAR grow between 5.0% and 7.0% this year. Hotels in Hong Kong will have the biggest growth in supply this year – 2.5%, but the growth of demand by 3% will help to improve results of the previous year and increase ADR and RevPAR.

Current occupancy of main destinations of the region is also very optimistic. Average occupancy during January 2011 – January 2012 estimated 84.5% for hotels in Hong Kong, 84.1% in hotels in Singapore, and 67.9% for hotels in Beijing.

08.04.2012

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