Asia’s Hotel Occupancy Continues to Climb in 2023
Global occupancy growth is close to normal across most gateway markets. Asia has seen key cities occupancy growth of 108-153% YTD-2023 compared to 2022. Growing demand now fueling the rate increase this year.
Beijing leads at 153 per cent, Shanghai 139 per cent, Tokyo 137 per cent, Hong Kong 124 per cent, Singapore 113 per cent, Delhi 111 per cent, and Mumbai 108 per cent.
Tokyo Commands the Highest Average Room Rates in Asia
Average Room Rates in Asia have gone up by USD$33 to USD$173 from 2022 versus 2023 which is why Q3-2023 saw a nominal increase of just 1 per cent due to the steep jump earlier in Q1-2023.
Tokyo leads with the highest average room rates of USD$281 a night, followed by Seoul at USD$277, Singapore at USD$265, and Hong Kong at USD$246.
In India, Bangalore USD$143, Mumbai USD$148, Delhi USD$135, and Chennai USD$96.
In China, Hong Kong leads at USD$246 a night, Beijing averages USD$166, and Shanghai averages USD$141.
FCM Consulting Forecasts a 3-8% Increase in Average Hotel Room Rates
Hotel occupancy levels across the world have averaged 68% per month in 2023. Over the last 6 months, corporate ARRs have plateaued signaling rate stability. However, hotels are forcing a 3-8 per cent increase in 2024 due to rising operating costs and sustainability investments.
“To counter the increase in prices while managing reduced travel budgets, we have several solutions for our clients such as changing options to stay within budget, consolidating suppliers for leverage, and considering lower ‘star ratings’ expectations without compromising on service and quality, said Bertrand Saillet, Managing Director of FCM Travel Asia.
