- Japan led with a strong performance during the Cherry Blossom season, while China faced challenges with occupancy rates.
- Positive trends in Central South Asia and mixed results in Southeast Asia reflect varied regional dynamics.
April 2025 saw a generally positive trend in the hotel industry across the Asia Pacific, with 10 out of 16 major countries reporting growth in occupancy, average daily rate (ADR), and revenue per available room (RevPAR). Notable exceptions were China, Singapore, and Thailand, which did not follow this upward trend. The period was notably influenced by the timing of major religious events and public holidays, such as Ramadan, Easter, and Passover, which shifted travel patterns.
Standout Performance in Japan
Japan continued to excel within the region, achieving the highest occupancy rates in the past 12 months during its peak Cherry Blossom season. The country benefited from a favorable yen-to-dollar exchange rate, although this advantage is diminishing. The ongoing Expo 2025 in Osaka is expected to boost hotel performance further through mid-October.
Challenges in China
In contrast, China experienced a decline in RevPAR, primarily due to reduced occupancy rates amidst a growing supply of hotel rooms. Performance varied significantly across different Chinese cities, with places like Macau SAR and Sanya increasing, while Beijing and other major markets faced declines.
Growth in Central South Asia
India, the Maldives, and Sri Lanka all saw advances in RevPAR, driven by increases in both ADR and occupancy. India, in particular, showed robust growth across all major markets, with significant gains in cities like Mumbai, New Delhi, Bengaluru, and Rajasthan.
Mixed Results in Southeast Asia
The performance in Southeast Asia was inconsistent. Vietnam and Indonesia enjoyed increased ADR and occupancy, leading to higher RevPAR. However, Malaysia and Singapore saw improvements driven solely by occupancy, and the Philippines and Thailand struggled with declining occupancy rates, although the Philippines managed to offset this with higher ADR.
Performance in the Southern Hemisphere
Countries in the southern hemisphere, including Australia, New Zealand, and Fiji, reported positive RevPAR figures in April. The cooler weather and a weaker Australian dollar against the U.S. dollar helped boost long-haul inbound travel, benefiting the region’s hotel industry.
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