Departmental expenses increased at a slower pace compared with total revenue – a direct result of generally well-kept payroll costs.

In 2016, nearly every one of the APAC region’s revenue streams increased, with the exception of Other Operated Departmental. Growth in room revenue (+1.9%) had the most significant impact on the overall 1.5% increase in total revenue, followed by F&B (+0.8%).

Other Operated Departmental revenues decreased due to an overall downsizing in spas. tied with the cost of food and beverage.

Overall, APAC hotels maintained undistributed operating expenses, flat (-0.03%) compared with 2015. Costs related to Admin & General, Marketing and Utilities declined, while Property Operations & Maintenance and Information & Telecom rose.

The decline in undistributed operating expenses had a positive effect on the bottom line, resulting in a 3.4% increase in GOPPAR (Gross Operating Profit Per Available Room).

The countries that recorded the strongest increases in GOPPAR were Vietnam, New Zealand, India and South Korea, while the countries with the steepest declines were the Philippines and Maldives.

Vietnam, New Zealand and India have all experienced TrevPAR (Total RevPAR) and GOPPAR increases for consecutive years due to new peaks in tourist arrivals boosting occupancy levels and average daily rates.

For hotels in the Maldives, political issues have caused the market to record the steepest GOPPAR declines in the region through 2015 and 2016. Declines in Singapore and the Philippines, meanwhile, are a result of slow-downs in demand.

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