Hotel business rides the wave, but Asia’s not onboard yet

STR says the hotel industry is now operating “from a position of strength”.
STR says the hotel industry is now operating “from a position of strength”. Photo Credit: AdobeStock/Can

Hotel business in Asia has lagged the rest of the world in recovering from the pandemic, according to figures produced by hotel data analyst, STR.

In 2022, revenue per available room (RevPAR) in the Asia region was down more than 31% compared to 2019 – the biggest drop among all regions. Hotel occupancy dropped 23.7% (2022 compared to 2019).

“While most global regions were impacted by Omicron in early 2022, top-line performance recovery made big waves in the latter half of the year,” said Robin Rossmann, STR’s managing director.

“Unlike previous downturns, room rates have been the key driver of recovery as each of the global regions, excluding Asia, showed an ADR increase over 2019.”

Rossmann said the industry’s resilience has been underpinned by significant pent-up leisure travel over the summer along with the return of corporate demand, “as the nature and length of this business travel has evolved”.

“Though occupancy came in below the pre-pandemic comparables, the metric is anticipated to stabilise throughout 2023,” he added.

Mossman said that despite economic headwinds, “the industry is operating from a position of strength in the new year”.

USD constant currency, 2022 (percentage change from 2019):

• Occupancy: 64.6% (-10.5%)
• Average daily rate (ADR): US$148.97 (+18.5%)
• Revenue per available room (RevPAR): US$96.25 (+6.1%)

• Occupancy: 52.3% (-23.7%)
• ADR: US$84.38 (-9.9%)
• RevPAR: US$44.16 (-31.2%)

Australia & Oceania
• Occupancy: 63.9% (-13.6%)
• ADR: US$162.34 (+20.8%)
• RevPAR: US$103.74 (+4.3%)

Middle East 
• Occupancy: 63.6% (-3.3%)
• ADR: US$173.10 (+22.2%)
• RevPAR: US$110.12 (+18.2%)

North America
• Occupancy: 62.5% (-4.9%)
• ADR: US$148.39 (+13.9%)
• RevPAR: US$92.77 (+8.3%)