According to STR analysts, performance momentum from 2017 extended into the first months of 2018 with strong demand, especially from mainland China, generating more near-capacity occupancy nights and higher ADR premiums.
Hong Kong has recorded an outstanding 2018 first quarter with occupancy above 90%, according to hotel performance analysts STR. This was the first Q1 in STR’s Hong Kong database with occupancy above 90%.
According to STR analysts, performance momentum from 2017 extended into the first months of 2018 with strong demand, especially from mainland China, generating more near-capacity occupancy nights and higher ADR premiums.
Data from the Hong Kong Tourism Board showed a 9.9% increase in visitor arrivals during the first two months of 2018. Visitors from mainland China accounted for 13.6% growth compared with the same two months in 2017.
Hong Kong
• Occupancy: +3.8% to 90.1%
• Average daily rate (ADR): +10.7% to HKD1,482.02
• Revenue per available room (RevPAR): +14.9% to HKD1,335.10
Elsewhere, he absolute occupancy level was the highest for a Q1 in Maldives since 2014 thanks to the highest Q1 demand increase in the country (+10.6%) since 2010.
According to the Ministry of Tourism, tourist arrivals to Maldives increased 17.0% from Q1 2017. Europeans represented the largest share of arrivals (56.8%) and most growth (+23.2%) compared with other world regions.
Maldives
• Occupancy: +7.6% to 76.7%
• Average daily rate (ADR): +1.6% to MVR12,569.93
• Revenue per available room (RevPAR): +9.4% to MVR9,637.91
In Vietnam, even with healthy supply growth (+4.3%), the absolute occupancy level was the highest for a Q1 in Vietnam since 2007.
STR analysts cite strong tourism and foreign investment as reasons behind the hotel performance and inventory growth in the country. As of STR’s March Pipeline Report, Vietnam ranked third in the Asia Pacific region among countries with the most rooms in construction (20,633 rooms in 59 hotels).
Strong demand has helped hoteliers maintain their pricing power during this time of supply growth.
Vietnam
• Occupancy: +5.9% to 75.7%
• Average daily rate (ADR): +5.5% to VND2,917,007.93
• Revenue per available room (RevPAR): +11.7% to VND2,208,814.66