Judging by the three key metrics, the performance of hotels in the Asia Pacific region in 2011 versus 2010 was mostly positive. In the October performance metrics from STR Global, the most recent statistics available at the time of writing, Asia Pacific occupancy for the month of October fell 2.0% to 70%, average daily rate (ADR) increased 8.4% to US$150.60, and revenue per available room (RevPAR) rose 6.2% to US$105.41. Results for the previous month followed a similar pattern with year-on-year occupancy in September for the Asia Pacific region flat at 68.1%, ADR up 6.6% to US$140.06, and RevPar at US$95.34, an increase of 7.1%, according to the business intelligence firm. 

 

Japan had a difficult year in 2011 after the March earthquake, tsunami and nuclear radiation issues. Hotels in Sendai, Sapporo and Tokyo fared worst with occupancy in Japan overall down 21.3% for March 2011 versus 2010, and larger falls in Tokyo and Sendai.

Tokyo experienced a further dip in occupancy in September due to the typhoon excepting a sharp rise on the night of the typhoon as stranded commuters sought last minute accommodation.

 

Hotels and resorts in Thailand also struggled in 2011, particularly in October as flooding in Bangkok resulted in a fall in occupancy levels and ADR.

 

Bright spots in the region in terms of performance in 2011 included the South China locations Hainan and Sanya, which experienced increases in occupancy of 6.4% and 9.6% respectively between 2010 and 2011, according to STR Global.

Hotel development in Asia Pacific continued at a pace in 2011 with the focus remaining on the emerging markets of China and India.

 

Domestic chains China Lodging Group, Jin Jiang and Homes Inns all announced extensive expansion over the next couple of years in China, whilst international chains including Starwood, IHG, and Marriott also set ambitious targets for new property openings in the country.

 

A note of caution was sounded later in the year by Chinese tourism industry expert Zhao Huanyan, however, who warned that an oversupply of hotel rooms in China was inevitable, while a report by Bloomberg warned of hotel rooms potentially sitting empty as the predicted increase in demand failed to match the supply of new hotels.

 

High profile openings during the year included the self-proclaimed world’s tallest hotel, The Ritz-Carlton Hong Kong; Jumeirah’s first hotel in China, the Jumeirah Himalayas Hotel in Shanghai; training hotel Hotel ICON in Hong Kong; and Macau’s largest integrated resort, the Galaxy Macau.

 

Major branding announcements during the year included Accor’s announcement that it was restructuring its economy brands to focus on the creation of ibis as a mega brand, and IHG which announced the launch of new upper midscale China brand, set to launch late 2012 or early 2013. New brands launching this year included the five-star brand Kerry Hotels from Shangri-La Hotels & Resorts, and Oasia from Far East Hospitality. Brands shelved, meanwhile, included the UAE-based Jumeirah Group’s new lifestyle brand Venu Hotels, which was expected to launch in 2011 in Shanghai.

 

With the battle for custom heating up, new marketing and service initiatives were prominent this year, the most notable initiative being the simultaneous development by Starwood and Hilton of personalized travel programs for Chinese travellers as more Chinese people travel internationally.

 

Personalized marketing was in evidence elsewhere too with Marriott announcing plans to launch a new hotel prototype targeted specifically at Indian business travellers as just one example.

 

Advances in technology, meanwhile, continued to transform the hospitality industry with mobile applications in particular taking off in a big way during 2011. Various apps flooded the market with innovations targeted at improving both operational efficiency and guest communications and service.

 

More hotel companies and individual properties also jumped onto the social media bandwagon in 2011 with social media tools such as Twitter and Facebook increasingly being used to push promotions.

 

In contrast, sustainability took something of a back seat this year, but there were a several advances including IHG’s launch of version 2.0 of its sustainable hotel design site and the launch by the World Tourism Organization of a new online sustainability evaluation tool.