Marriott optimistic on revenue improvement in Asia
Marriott International expects to maintain positive revenue per available room (RevPar) for its properties in Asia, which has already exceeded levels posted in 2019.
Rajeev Menon, president of AsiaPacific excluding Greater China at Marriott, said the tourism industry remains robust this year as people have returned to travelling after borders reopened in 2022.
Tourists are willing to spend more for unique travel experiences after saving up money for three years during the pandemic, he said.
Excluding China, Asia-Pacific RevPar for the company this year has exceeded the corresponding period in 2019 by 12%, with average daily rates surging by 18%, said Mr Menon.
Marriott’s properties reported an average occupancy rate of 67%.
He said this performance was bolstered by strong growth in international travel, particularly intra-Asia trips for both leisure and business purposes, despite lower numbers of Chinese guests.
Marriott properties in Thailand secured long-haul markets, such as the US, and short-haul markets, especially India.
Mr Menon said hotels in India, Japan and Indonesia also recorded a healthy performance, mostly driven by the strong domestic market.
Despite global economic risks and limited flights, he said Asia is poised to maintain the growth, mostly driven by intra-regional travel and pent-up demand from China.
Favourable factors include a depreciated yen and baht against the US dollar, said Mr Menon.
As flights between China and other Asian countries have returned to 40% of 2019 frequencies and continue to increase, Asian properties can expect more Chinese customers in the upcoming months, he said.
Mr Menon said the room rates of hotels with a stronghold in Chinese markets such as Thailand, Japan, South Korea and New Zealand are expected to strengthen this year.
He said Thai outbound tourists have posted weak numbers at the company’s properties. Marriott’s branches in Japan can attract more Thais than those in other countries, but customer totals still lag the same period in 2019.
Mr Menon said Asia-Pacific can grow over the next decade because of a large young population. With 60% of the world population residing in the region, there is a great upside for hotel expansion and RevPar, he said, as AsiaPacific has the potential to overtake other regions over the long term.
He said Marriott has sufficient employment levels, except in Japan, which reopened later than other countries.
The company operates 520 hotels in Asia-Pacific, excluding China, under 24 brands. Marriott plans to launch 60 hotels this year, with 290 properties in the pipeline over five years.
Mr Menon said the new Thai government should prioritise infrastructure improvements and support sustainable tourism initiatives.