Hotel prices in the first quarter of 2014 have declined, due to geopolitical and economic factors across Asia.
Following a 4.1% drop in 2013, the region’s average daily rate (ADR) continued to drop in the first quarter of 2014, dropping 3.6% to US$122.36. Meanwhile Occupancy climbed 0.7% to 66.0%, but this did not stop the region’s revenue per room (revPAR) falling 2.9% to US$80.81.
In contrast, in Southeast Asia however there was a 0.3% dip in ADR, to US$146.55, which was worsened by a 4.0% decline in occupancy.
Eliazbeth Winkle, managing director of STR Global, the drop in SE Asia is mostly due to Bangkok’s political issues.
“In February and March, Bangkok reported the lowest occupancies in 10 years," Ms Winkle said.
"The prolonged political crisis is impacting the hospitality industry and wider economy.”
However, Osaka experienced Asia’s only double-digit revPAR increase, rising 11.5% to US$108.42.