HotelsSTR finds Thai resort is bouncing back, while Hong Kong continues to slump

Phuket finished? Not according to these figures

Hotel rates have lift-off in Phuket.
Hotel rates have lift-off in Phuket. Photo Credit: artpritsadee/GettyImages
SINGAPORE – Reports of the demise of Phuket appear to be, at the very least, premature.

Latest figures from hotel performance analyst STR show that in January 2020 Phuket saw its first ADR (average daily rate) and RevPAR increases since 2018.

RevPAR in the Thai resort city increased year over year for the first time in 18 months, due primarily to a lift in ADR—the first jump in the metric after 14 consecutive months of declines.

STR analysts note that the slight occupancy dip was due to supply (+2.9%) outpacing demand (+2.1%).

Phuket, Thailand
Local currency, January 2020 vs. January 2019
•    Occupancy: -0.9% to 84.0%
•    Average daily rate (ADR): +2.2% to THB5,907.87
•    Revenue per available room (RevPAR): +1.3% to THB4,959.80

Not surprisingly, the hotel performance in Hong Kong continues to decline.

STR noted the the absolute occupancy and RevPAR were the lowest levels for any January on record in Hong Kong, while the absolute ADR value was the lowest for a January since 2004.

Demand in the market dropped 36.6%in January  which STR analysts attributed to ongoing protests in the market topped by the outbreak of novel coronavirus (COVID-19). Performance declines have extended into February according to preliminary data.

Hong Kong SAR
Local currency, January 2020 vs. January 2019
•    Occupancy: -37.2% to 56.2%
•    Average daily rate (ADR): -30.0% to HKD999.88
•    Revenue per available room (RevPAR): -56.0% to HKD561.85

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