Overall, hotels saw a shrinking in occupancy rates by 1% to 66.9%, which has dragged down average daily rates (ADR) and revenue per available room (RevPAR) to US$97.32 (-0.7%) and US$67.25 (-1.6%) respectively.
Hotels in Asia Pacific continue to weather a slight downturn in the second quarter this year, likely hampered by the recent escalation in trade disputes and political impasse between China and the US.
Hotel research company STR revealed that hotels fielded a softer performance across three key performance indicators compared to the same time last year.
Overall, hotels saw a shrinking in occupancy rates by 1% to 66.9%, which has dragged down average daily rates (ADR) and revenue per available room (RevPAR) to US$97.32 (-0.7%) and US$67.25 (-1.6%) respectively.
But hoteliers in Jakarta and Manila have some reason to cheer, fielding some positive shifts despite the overall dip in occupancy.
STR analysts note that the Indonesian general election in April and May “had only a limited impact on quarterly performance”.
Hotels in Jakarta saw a small bump up in ADR by 1.9% to IDR1,028,317.03 (US$73.34) despite a drop of 6.7% in occupancy and decline in RevPAR by 4.9% to IDR528,620.82.
Due to the Ramadan calendar shift, May was the worst performing RevPAR month of the quarter (-17.3%), whereas June produced significant RevPAR growth (+25.3%), STR said.
In Manila, occupancy fell slightly “due to supply growth of 4.6%”, but this was balanced by “strong demand of 3.5%” that helped hoteliers push room rates.
The country saw a 9.8% spike in international tourist arrivals in the first five months this year, according to figures from the Philippines Department of Tourism.
Hoteliers managed to grow ADR and RevPAR by 3.9% and 2.8% to PHP5,247.14 and PHP3,510.40 respectively.
MICE is expected to be another growing source of hotel demand for Manila, following efforts by the Tourism Promotions Board Philippines to promote Metro Manila as a MICE destination.