STR reported China hotel RevPAR rose 6.9% year over year the week ended January 7. RevPAR, when compared to the same week in 2019, was down -39.6%. The results should start to change with the next report due to the removal of most of the restrictions, offset by what is still being reported by some media sources by ridiculously high daily Covid-19 positivity rates.
While the Macao Government Tourism Office is predicting visitor arrivals of just 50,000 a day for Chinese New Year week, hotel room rates across Macau are said to be surging with standard rooms now regularly priced above HK$8,000 and in some cases exceeding HK$11,000. Last year the price of rooms ranged from HK$1,000 and HK$2,000 a night. The big problem seems to be that the casino resorts are having trouble with staffing due to the Covid rates and their dismissal of staff during the pandemic.
Colliers International said they are expecting hotels in the Philippines will complete some 3,900 rooms, a record high for developers, as they anticipate the projected recovery in global travel in 2023. The group is further anticipating the construction of 2,120 rooms annually between 2023 and 2025, a sharp increase from the 720 rooms completed yearly between 2020 and 2022. Colliers is expecting more foreign-branded hotels opening in the next 12 to 36 months. From 2023 to 2025, about 44% of the new supply is likely to open in the Bay Area, Makati CBD and Ortigas CBD with the increase set to be driven by the recovery in foreign and local tourist visitation, more modern airports and the growing propensity for spending on leisure. Colliers expects average daily hotel rates to have risen by 15% in 2022 and continue to improve in 2023 following the projected rise in local and foreign tourists. The rates are likely to be driven by an attraction of more international travelers, especially the long-haul and high-spending ones. While domestic tourism is expected to jumpstart the market, Colliers expects foreign travel to continue to rise with 2 million foreign tourists recorded as of mid-November 2022, ahead of the 1.7 million target. The US, South Korea and Australia were the top source markets. Foreign visitors spent some $1.7 billion from February to September 2022.
STR said Melbourne, Australia’s hotel industry recorded its highest monthly average daily rate on record, according to preliminary December 2022 data. Occupancy was reported to be 67.7% while average daily rate was A$236.53 resulting in RevPAR of A$160.22. STR said the ADR and RevPAR levels surpassed the pre-pandemic comparables by 27.2% and 9.1% respectively while occupancy remained below the 2019 comp by -14.3%. The month’s highest occupancy level was recorded on Saturday, December 10 at 90% with the market’s daily occupancy levels remaining above the 60% mark throughout the first half of the month. The highest daily ADR and RevPAR levels were reported on New Year’s Eve at A$372.23 and A$300, respectively.
StayWell Holdings is expecting a big 2023 full of expansion, in line with the company’s global market consolidation strategy across key growth regions. The medium to long-term expansion strategy will include setting up 250 hotels over several key bespoke hospitality destinations in the Middle East, Asia Pacific and Europe. StayWell’s expansion comes at a time when tourist footfall at popular destinations like Bangkok, Singapore, and Saudi Arabia is expected to gain momentum in the coming years. The company will be adding their luxury brand – The Prince Akatoki, in the UAE where they already have four hotels. The expansion project is expected to be completed by 2032 and will focus on an asset-light model for growth and a major portion of the portfolio will be managed directly by the group. StayWell wants to establish a strong presence in the regions that are aligned with their expansion strategy especially in new growing markets of the Middle East, Thailand and Singapore, along with Europe. The group recently signed a new hotel brand named Park Proxi in Egypt. The first hotel under the Park Regisbrand banner, Park Regis by Prince Deira Islands, was signed in Dubai, expected to open by the second quarter of 2023.
Megaworld Hotels and Resorts is building its first hotel property in Palawan, Philippines. The 10-story Savoy Palawan will offer 306 guest rooms and suites in varied layouts. While the first hotel in Palawan, this will be Megaworld’s fourth Savoy Hotel in the portfolio. The hotel will have its own swimming pool with a separate kiddie pool, and a pool deck at the third level of the hotel. It will also have its own fitness center, spa with wet and dry sauna and a kid’s club. There will also be four food and beverage outlets in the hotel. The property will have its own ballroom and smaller function rooms. Suites and VIP guests will have access to the Executive Lounge. The Savoy Palawan is expected to be ready to open in 2028. It will be the seventeenth hotel property launched by Megaworld Hotels and Resorts, with 12 currently operational totaling 4,500 hotel room keys.
Club Med Cherating, the all-inclusive resort in Pahang in Malaysia, doubled its domestic business last year. The general manager of Club Med Malaysia and Singapore, Olivier Monceau said the Malaysia market rebound has been swift and powerful and they have surpassed occupancy rates from the pre-pandemic days. The occupancy rate at Club Med Cherating was at 75%. Olivier gave out some updated information on Club Med expanding its footprint in Malaysia with a new project in Kota Kinabalu. The Borneo resort is set to open by the end of 2024. Earlier reports had set the opening in late 2023 or early 2024. Olivier described the Kota Kinabalu as a four-trident (star) resort with a five-trident exclusive collection space. The resort will occupancy 41 acres of land between woods and waves. Other than the Kota Kinabalu resort, Club Med is set to open many more locationsglobally in the next two years. Its aim in 2022 was to open 17 new resorts and complete 13 new renovations by 2024.
The Anam Mui Ne celebrated its grand opening on January 11. The resort is perched on 1.2 hectares of oceanfront in Mui Ne, the popular beach town in Vietnam, an easy commute from Ho Chi Minh City. The resort has 127 rooms and suites, two restaurants and a bar, a five treatment room spa, two swimming pools, a ballroom, conference rooms, water sports center, fitness center, yoga room, kid’s club, gift shop and more.
STR gave preliminary data on Dubai’s hotel results for December. Dubai’s hotel occupancy came in lower than the pre-pandemic comp, but the average daily rate pushed RevPAR above 2019 levels. Occupancy was 76.6% while ADR was AED892.84 resulting in RevPAR of AED684.03. The occupancy was -2% below December 2019 but ADR and RevPAR were 33.8% and 31.1% higher, respectively. New Year’s Eve showed occupancy at 91%, ADR at AED1,765.51 and RevPAR at AED1,606.74. With the exception of four days during the month, daily occupancy levels remained above 70%.
