Asia Pacific - H1 2012 Saw Higher Occupancy And Rates For Asia Pacific Hotels
August 13, 2012
A report by CBRE found that average occupancy and average daily rate increased for H1 2012 compared to H1 2011.
Hotels in the Asia Pacific turned in a stronger performance in H1 2012, said CBRE in its latest Asia Hotels MarketView report. Compared to the same period last year, hotels witnessed higher average occupancy and higher average daily rate (ADR) from January to June this year.
Occupancy rates across all Asia Pacific hotels rose to 65.9% from 64.6%. Meanwhile, there was a marginal increase in ADR of about 1.1% to USD 143.70.
Revenue per Available Room (RevPAR), showed a greater improvement, rising by 3% from last year to USD 94.60 this year.
CBRE also found that hotel rooms in the Asia Pacific region were the most expensive in Singapore, Hong Kong and Seoul, with the three cities having the highest ADR.
"Visitor arrivals continue to be very strong into Singapore. The Eurozone crisis, while casting some shadows on the short-medium term outlook, has not impacted demand for hotel rooms in Singapore significantly in the last six months," said Robert McIntosh, Executive Director, CBRE Hotels, Asia Pacific.
McIntosh also noted that Singapore's hospitality sector has performed better than expected in the face of the current Eurozone crisis.
"It points to Singapore's success in restructuring the sector, improving tourist attractions and business events as well as medical and gaming facilities," he said.
The report also stated that the number of hotel rooms in Singapore is expected to rise by 17% from 2011 to 2014, with demand remaining strong from a projected 20% rise in visitor arrivals over the same period.
The improved performance of the sector is likely to prompt increased buying activity from hospitality REITS, as well upcoming RIETS that are awaiting listing.
Tags: Commercial real estate, Investment properties