Whitebridge APAC Hotels Monitor, Issue 10
Talk about global headwinds. Economies are stalling around the world, inflation and interest rates remain stubbornly high, and as if that were not enough, we now have another major conflict to think about. Within APAC, the key influencer is China. As the BBC recently put it: ‘When the US sneezes, the rest of the world catches a cold. But what happens when China is unwell?’ The world will feel the effects of the latter, but APAC perhaps more so in the coming months. And yet ,despite all these headwinds, tourism has performed strongly across the region in the last 12 months.
There were many strong performers in APAC in the last 12 months, with six markets achieving ADR growth in excess of +40%, seven markets recording occupancy growth in excess of +50% and three markets with GOPPAR growth in excess of +300%. Star performer was Tokyo (GOPPAR, +1,420%) and the weakest destination was Maldives (GOPPAR -11.8%).
The development cost picture is a patchwork with mixed trends in each sub-region and across different nations, but the overall image is one of continued pipeline growth in APAC.
China may not have caught a full-blown cold but its sniffles were certainly reflected in the very low number of deals tracked in the country. Across the East China Sea though, Japan was jumping with lots of transactions. Despite all these headwinds, tourism has performed strongly across the region in the last 12 months.
The final page feature is an extract from a recent consumer survey undertaken by our friends at Gensler and should prove useful for designers, operators and investors in our wonderful hotel sector.
About WhiteBridge Hospitality
Whitebridge Hospitality is a specialist advisor to investors, developers and operators in the hospitality industry around the globe. We provide investment, operational and planning advice, and guidance in respect of the entire hospitality spectrum, including: hotels, mixed-use developments, conference and exhibition centres, spas, leisure facilities, casinos, visitor attractions and sporting venues. Our uniquely qualified team can provide services throughout an asset's life cycle, from site selection and acquisition, through master planning and feasibility studies, to operator selection, operational and asset strategy advice, to sale and agency services.
