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Asia-Pacific

Australia Hotel Occupancy Dips Between June and July

Alan Woinski
August 11th, 2022 at 7:55 AM EDT

Skift Take

  • STR reported Sydney, Australia hotel occupancy dipped in July from June. Occupancy in July 2022 was 65.8% while ADR was A$239.96 resulting in RevPAR of A$157.80.
  • The Business Times reported business has picked up so much in Singapore that hotels are frantically looking for employees as staffing levels have yet to match the tourism pickup.
  • Choice Hotels Asia Pacific said corporate travel has returned to a new normal with guests seeking value for money as work trips merge into leisure.

STR reported Sydney, Australia hotel occupancy dipped in July from June. Occupancy in July 2022 was 65.8% while ADR was A$239.96 resulting in RevPAR of A$157.80. Even though that was a decline from June 2022, when compared with July 2019 the ADR and RevPAR levels were higher. Occupancy was -16.1% below July 2019. For the month there were only two days that occupancy dipped below 50%.

The Business Times reported business has picked up so much in Singapore that hotels are frantically looking for employees as staffing levels have yet to match the tourism pickup. The Singapore Hotel Association said Singapore’s hotel workforce shrunk by 25% to 30% over the past two years. In June, Changi Airport passenger volumes exceeded 50% of pre-pandemic levels, achieving the year-end target earlier than expected. Hospitality staffing levels have lagged behind. Waiter, waitress, room attendant, front office receptionist and cook are the most sought-after positions right now. Resorts World Sentosa is looking to fill more than 1,500 positions across all areas of the integrated resort, while Marina Bay Sands is seeking to fill 1,750 positions. MBS said the pace they are operating at today is returning to pre-Covid levels. It is not just the hotel and restaurants as MBS is seeking 450 casino dealers. The IR retained its close to 10,000 strong workforce during the pandemic. As for hotels, most of the major groups have positions available on their recruitment pages. From what this article said, Singapore hotels are still getting better reviews than hotels in Malaysia, despite the manpower shortage. In June, Singapore hotels recorded the highest RevPAR since the beginning of the pandemic with average room rates hitting a 6-year high and average occupancy at a 6 month high of 76.9%.

Choice Hotels Asia Pacific said corporate travel has returned to a new normal with guests seeking value for money as work trips merge into leisure. Both capital and regional cities are experiencing a major surge in corporate bookings as business travelers opt for longer stays and embrace Covid safe travel and a return to the workplace. Choice APAC said Sydney has been the most popular destination leading the return to business stays. Adelaide CBD is also enjoying a recovery, with Choice reporting occupancy up 21% on similar market competitors and 67% on 2021 figures. Choice said they have experienced a rebound across their city hotels and resilience within their customer base with corporate forward bookings looking strong. Choice even said their first half 2022 figures are showing this segment eclipsing 2019 figures.

Club Med will unveil three new ski resorts – Club Med Tignes and Club Med Val d’Isere in the French Alps and Club Med Kiroro in Hokkaido, Japan. All three are scheduled to debut in December 2022. The three new properties are part of the all-inclusive resort pioneer’s plan to open 17 new resort and finalize 13 renovations or property expansions by 2024. Club Med Tignes in Tignes Val Claret will be equipped with 430 rooms including 25 Exclusive Collection 5-Star suites, ski-in/ski-out access, two restaurants, full service spa and wellness salt wall, what could be the largest indoor pool in the Alps, a childcare program and a ski domain suitable for every level. Club Med Val d’Isere is in the middle of a top to bottom refurbishment transforming the resort into an Exclusive Collection property. It will reopen in December with 216 new luxury rooms, Champagne service each night, ski-in/ski-out access, gourmet dining, childcare programs, a spa and a yoga program. In Japan, the 400 room Club Med Kiroro is a four season resort. It will offer unlimited ski-in/ski-out access to a ski domain with 23 courses, indoor nature centers, a kid’s zone and much more. Club Med owner Fosun Group purchased the Kiroro Resort along with two hotels in 2021 from Property Perfect. The first hotel, Club Med Kiroro Peak, will open in December. Their other hotel offering, Club Med Kiroro Grand, will open in 2023.

Sunway Resort in Kuala Lumpur said they completed their phase one renovation project worth US$60 million and unveiled eight brand new rooms and suites in its effort to seal its position as Asia’s leading fully-integrated premier hospitality and entertainment destination. The eight brand new rooms and suites are located in Sunway City Kuala Lumpur and comprise the Deluxe Rooms, Grand Deluxe Rooms, Club Rooms, Wellness Suites, Business Suites, Executive Suites, Premier Suites and Sunway Grand Suite. Phase one of this transformation of the property began in early 2020 and is the most extensive renovation in the Malaysian resort’s 25 year history. The other phases of Sunway Resort’s dramatic transformation will be revealed progressively this year. The resort said guests can expected more themed suites, dedicated family spaces, new dining destinations, reimagined leisure facilities including the swimming pool, health club and more.

Pulse Hotels & Resorts announced the opening of its newest addition to its portfolio, Nova Maldives. Located in the heart of the South Ari Atoll, the all-natural island includes 76 spacious over-water and beach villas with 10 categories designed for the stay and includes private terraces and endless ocean views. There are two a la carte restaurants, an all-day dining buffet, bars and the Eskape Spa, nested over water with views of the Nova lagoon. 

The Solea Coast Resort announced their grand opening in Panglao, Bohol on Panglao Island in the Philippines. The resort had its grand opening on July 29th after years of delay due to the pandemic and devastation from Typhoon Odette. Solea Coast Resort is under the umbrella of Solea Hotels & Resorts and is the first brand outside of Cebu City. Its sister properties are Solea Mactan Resort, Kumbira by Solea, Wooloo Mountain Resort and Nanda Café.

Luxury hotel operators in South Korea are reporting more than 50% on-year growth with higher expectations for the peak summer season. This is bad news for budget hotels. Locals are still told to stay home due to the virus risk, while tourists returning in full force are staying in higher-end hotels. The number of foreign visitors to Korea in June rose to 227,713. That was the first time since the onset of the pandemic that this statistic was over 20,000 for a month. Japan visitation is the key as Korea is still waiting, like most other Asian countries, for Chinese tourists to be allowed to travel again. As major hotel brands diversify and upgrade their services and travelers seek higher-end accommodations, the budget category is the one suffering. 

Alan Woinski
August 11th, 2022 at 7:55 AM EDT

Companies: Choice Hotels International, Club Med, Marina Bay Sands, Pulse Hotels & Resorts, Resorts World Sentosa, Solea Hotels & Resorts

Locations: Kuala Lumpur, Maldives, Philippines, Singapore, South Korea, Sydney

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