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Overall room occupancy across hotels in the Asia Pacific jumped to 42.7% in Q1 2021.
With COVID-19 containment measures gradually eased domestically, hotels across the Asia Pacific registered a rebound in performance by the end of the first quarter of 2021, according to Colliers International.
In its Hotel Insights Q2 2021 report, Colliers revealed that Asia Pacific hotels saw overall room occupancy jump to 42.7%, while the average daily rate (ADR) fell to US$78.04 (S$103.19) year to date in March.
With this, the region’s revenue per available room (RevPAR) dropped 17.6% year-on-year, but with improvement from the fourth quarter of 2020.
On room occupancy, the report noted that most markets within the region posted year-on-year declines, albeit hotels in Greater China registered strong recoveries according to STR.
“In local currency terms, Beijing, Shanghai, Sanya, and Taipei all recorded ADR increase when compared to 2020,” it said.
Looking ahead, Colliers noted that the global economic outlook “continues to improve, with a cautious return to travel underpinned by a rebound in domestic demand”.
And with vaccination rollout gathering pace and more green lanes are opened, Colliers expects to see a “rapid recovery led by pent-up leisure demand, followed by business”.
In Singapore, recent COVID-19 restrictions introduced by the government showed that the hospitality sector remains “one of the most vulnerable industries, mostly sustained by government support over the last 18 months”, said Govinda Singh, Colliers’ Executive Director, Valuation & Advisory Services, Asia.
He believes that the only way to lead this sector out of the woods is through rapid testing, higher vaccination rates and localised lockdowns.
“Singapore is well positioned for these, compared to most parts of the world. This raises the possibility of opening at least some travel corridors with similarly aligned countries. With this anticipation, hopefully we will witness a return of much-needed tourists to Singapore’s hotels around Q4 this year!” said Singh.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg
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