• Auckland performance falls due to supply growth and lower group demand
  • Sydney RevPAR down for 14th consecutive month

Hotels in the Asia Pacific region reported positive results across the three key performance metrics during May 2019, according to data from STR.

U.S. dollar constant currency, May 2019 vs. May 2018

Asia Pacific

  • Occupancy: +0.4% to 68.5%
  • Average daily rate (ADR): +1.1% to US$96.53
  • Revenue per available room (RevPAR): +1.5% to US$66.15

Local currency, May 2019 vs. May 2018

Auckland, New Zealand

  • Occupancy: -4.2% to 78.2%
  • ADR: -6.3% to NZD178.04
  • RevPAR: -10.2% to NZD139.18

The decline in occupancy was mostly due to a surge in new supply (+5.0%). However, STR analysts note that slower demand was also visible during the weekends, whereas corporate weekday business held steady. Minimal growth in demand for the month (+0.5%) was largely a result of lost group demand (10 or more rooms sold together) in comparison with last May. That May decline was a continuation of recent trends, as Auckland has reported a group demand decrease of 15.5% for the first five months of the year. Transient demand (less than 10 rooms sold together) rose 3.2% during the same time period.

Sydney

  • Occupancy: -0.9% to 81.8%
  • ADR: -2.7% to AUD208.98
  • RevPAR: -3.6% to AUD170.91

Performance decreases were mostly due to supply (+1.8%), which outpaced growth in demand (+0.8%). STR analysts note that RevPAR in Sydney has now declined year over year for 14 consecutive months. STR and Tourism Economics' latest forecast predicts a 2.6% decrease in RevPAR for 2019, after the metric dropped 1.0% in 2018.

About STR

STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.