Stark contrast in hotel performance for HK, Singapore in July 2019: STR

It was a tale of highly contrasting results when it came to hotel performance for Hong Kong and Singapore in July 2019, STR’s latest data showed.

In Hong Kong, occupancy decreased -4.1 per cent to 83.4 per cent, while average daily rate (ADR) fell -9.1% to HK$1,163.21 (US$148.29) and revenue per available room (RevPAR) plummeted -12.9% to HK$970.42.

STR’s latest data shows a dip in hotel occupancy in Hong Kong while Singapore’s hotels surpassed 90% occupancy for the first time in history

STR analysts note that ongoing protests in Hong Kong have affected performance levels in the market. Hotel demand for the month fell three per cent, and preliminary figures show a double-digit decline in visitor arrivals during the second-half of July, according to the Hong Kong Tourism Board. That steep drop follows a first half of the year that showed a 13.9 per cent increase in visitor arrivals.

In Singapore, one of Hong Kong’s fiercest rivals, hotel occupancy rose +1.9 per cent to 91.8 per cent while ADR was up +0.5 per cent to SG$268.79 (US$193.40) and RevPAR increased +2.4 per cent to SG$246.80.

The country eclipsed 90 per cent occupancy for the first time in history. STR analysts note that the transient segment (bookings of less than 10 rooms) produced strong demand growth (+7.1 per cent) during the month, while group (bookings of 10 or more rooms) demand fell 7.2 per cent. According to the Singapore Tourism Board, the country welcomed 9.3 million international visitors during the first six months of 2019.

Overall, hotels in the Asia-Pacific region reported mostly negative results across the three key performance metrics in July 2019. Region-wide occupancy increased +0.2 per cent to 73.2 per cent, while ADR dropped -1.5 per cent to US$95.48 and RevPAR fell -1.3 per cent to US$69.91 when compared to July 2018.

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