2018 ASEAN

Hotel Industry

Survey of Operations

2017 Calendar Year

ASEAN HOTEL INDUSTRY SURVEY 2018 1

TABLE OF CONTENTS

SUMMARY OF RESULTS 5

TABLE 2.1 DEPARTMENTAL REVENUES AND EXPENSES (BANGKOK) 9 TABLE 2.2 DEPARTMENTAL REVENUES AND EXPENSES (HCMC/ HANOI) 10 TABLE 2.3 DEPARTMENTAL REVENUES AND EXPENSES (JAKARTA) 11 TABLE 2.4 DEPARTMENTAL REVENUES AND EXPENSES (KUALA LUMPUR) 12 TABLE 2.5 DEPARTMENTAL REVENUES AND EXPENSES (MANILA) 13 TABLE 2.6 DEPARTMENTAL REVENUES AND EXPENSES (SINGAPORE) 14

FOOD & BEVERAGE STATISTICS 15

TABLE 3.1 FOOD AND BEVERAGE STATISTICS (PART 1) 15 TABLE 3.2 FOOD AND BEVERAGE STATISTICS (PART 1) 16 TABLE 3.3 FOOD AND BEVERAGE STATISTICS (PART 2) 17

SPA STATISTICS 18

TABLE 4 SPA STATISTICS 18

LABOUR STATISTICS 19

TABLE 5 LABOUR STATISTICS 19

PRODUCTIVITY ANALYSIS 20

TABLE 6 PRODUCTIVITY ANALYSIS 20

RESERVATION & SALES STATISTICS 21

TABLE 7 RESERVATION AND SALES STATISTICS 21

BUSINESS MIX PROFILE 22

TABLE 8 BUSINESS MIX PROFILE 22

NATIONALITY PROFILE 23

TABLE 9 NATIONALITY PROFILE 23

CHARTS 24

CHART 1 OCCUPANCY, ADR AND REVPAR PERFORMANCE 24 CHART 2 ADR BY MARKET SEGMENT 24

EXPLANATION OF TERMS & BASES USED 25

ABOUT HORWATH HTL – ASIA PACIFIC 26

Published: October 2018. All data represents calendar year 2017 performance. This report is sold or otherwise made available on an individual basis, and no

part may be reproduced or transmitted, in any form or by any means, without the express written consent of Horwath HTL. If and when such permission is

granted, the user must always source ‘Horwath HTL, 2018’. Requests to transmit or republish any of the information contained in the report should be

sent to singapore@horwathhtl.com.

Disclaimer: The information contained in this report, is based on data provided by participating hotel properties. This data has not been audited or verified

by Horwath HTL or any third party as to its accuracy. While every effort has been made to ensure that data obtained is correct, the accuracy of the

information presented is not in any way guaranteed by Horwath HTL. Users of this information should not rely solely on this information for commercial

and financial decisions; any such reliance is at the user’s risk. Horwath HTL will not accept any liability for any loss, financial or otherwise, resulting from

decisions made based on the data presented.

ASEAN HOTEL INDUSTRY SURVEY 2018 2

FOREWORD BY HORWATH HTL – ASIA PACIFIC

Dear Industry Partners,

Horwath HTL is once again pleased to present the 2018 ASEAN Hotel Industry Survey

of Operations. This study presents results gathered from Horwath HTL’s Industry

Surveys and refers to calendar year 2017.

In this issue of the ASEAN Hotel Industry Survey, aggregated results of 76 established

top-tier hotels with 28,471 rooms in Bangkok, Ho Chi Minh City (HCMC)/Hanoi,

Jakarta, Kuala Lumpur, Manila and Singapore are presented as benchmarks.

We would like to extend our heartfelt appreciation to the hotel owners and managers

participating in this year’s study and our Honorary Advisory Board for their support

and interest in this study. We would also like to thank the Indonesian Hotel and

Restaurant Association, Singapore Hotel Association and Thai Hotels Association for

their continuous support.

We hope to increase future participation from hotels and resorts in the region, so as

to make this publication ever more representative.

Finally, we are grateful for any feedback about this publication as well as our services.

Please visit our website at and www.horwathhtl.asia to learn more about the services

we offer and the publications we release throughout the region as well as elsewhere

around the world.

Yours Sincerely,

Robert Hecker

Managing Director

Horwath HTL – Pacific Asia

ASEAN HOTEL INDUSTRY SURVEY 2018 3

ANNUAL STUDY HONORARY ADVISORY BOARD

Patrick Basset Chief Operating Officer Upper Southeast & Northeast Asia

Garth Simmons Chief Operating Officer Malaysia, Indonesia and Singapore

Vincent Lelay Vice President, Operations Korea

Alan Watts President, Asia Pacific

Tom Smith Senior Vice President of Operations

Asia Pacific, Limited

Des Pugson Managing Director

Clarence Tan Managing Director for South East Asia and Korea

Leanne Harwood Managing Director for Australasia and Japan

Pascal Gauvin Managing Director for India, Middle East and Africa

David R. Good Vice President, Operations

Michael Henssler Chief Operating Officer Asia

Arthur Kiong Chief Executive Officer

Andrew Jessop Senior Vice President

Development Worldwide

Rainer Stampfer President, Hotel Operations Asia Pacific

Paul Hugentobler Group Director of Operations

Choe Peng Sum Chief Executive Officer

Dr. Jennifer Cronin President

ASEAN HOTEL INDUSTRY SURVEY 2018 4

Craig S. Smith President & Managing Director Asia Pacific

Mohd K Rafin Chief Corporate Officer

Tan Kim Seng Chief Operating Officer

Lothar Nessmann Chief Executive Officer

Dillip Rajakarier Chief Executive Officer Minor Hotel Group

Chief Operating Officer Minor International Pcl

Katerina Giannouka President, Asia Pacific

Andrew Langdon Chief Development Officer

Neil Jacobs Chief Executive Officer

Dean Schreiber Managing Director

Frederic F. Simon Chief Executive Officer Asia

Douglas Martell President and CEO

Barry Robinson President and Managing Director Wyndham Vacation Resorts

Asia Pacific Wyndham Hotel Group South East Asia and Pacific Rim

ASEAN HOTEL INDUSTRY SURVEY 2018 5

SUMMARY OF RESULTS EXPLANATORY NOTES

Room Revenue presented on Profit and Loss Statement for Singapore properties is inclusive of Service

Charge, which is regarded as part of the Revenue. While for other cities (Bangkok, HCMC/Hanoi, Jakarta,

Kuala Lumpur and Manila), Service Charge is treated as gratuity which is passed on directly to staff, and

hence, it is not included in the Revenue.

In this survey, we included hotels that recorded average daily rates above a certain level for each city i.e.

above USD 109 in Bangkok, above USD 110 in HCMC/Hanoi, above USD 117 in Jakarta, above USD 62 in

Kuala Lumpur, above USD 101 in Manila and above USD 202 in Singapore. The various rate levels have

been selected to achieve a consistent grouping of hotels relative to quality levels across each market.

It should be noted that the results presented in this study will be different than the ones in the individual

country studies, given the differences in hotel selections.

The Food & Beverage Revenues and percentages may not total between Departmental Revenues and

Expenses and Food and Beverage Statistics I & II, given figures presented are weighted averages based on

those hotels that provided data for each line item.

KEY FINDINGS

A total of 76 hotels contributed to this year’s ASEAN study, representing 28,386 rooms available per day.

In terms of occupancy, Bangkok remained the strongest performer at 82 percent, followed by HCMC/Hanoi

(81%) and Singapore (78%). Jakarta had the lowest occupancy of 57 percent. Overall, all cities recorded an

improvement in occupancy rate except Singapore.

Singapore retained its position as the highest ADR performer, at USD 256, while Kuala Lumpur recorded

the lowest ADR of USD 95. Most markets registered negative growth in ADR, with Singapore and Kuala

Lumpur experiencing the largest decrease of 7 percent. On the other hand, HCMC/Hanoi achieved the

strongest ADR growth of 5 percent.

Despite recording a decline in both occupancy and ADR, hotels in Singapore remained the RevPAR leader

in the region with a RevPAR of USD 200. Driven by the market’s healthy growth in both occupancy and

ADR, HCMC/Hanoi overtook Bangkok to come in second place with a RevPAR of USD 115. Similar to

2016, Kuala Lumpur continued to record the lowest RevPAR at USD 67. With the exception of Singapore

and Kuala Lumpur, all markets registered improvements in RevPAR compared to 2016.

This year Total Revenue per available room varied across all markets, comparing the top two to the bottom

two markets: the best performing market is Singapore leading at USD 134,456, followed by Jakarta at USD

76,368. The worst performing being Kuala Lumpur at USD 38,957, followed by Manila at USD 63,319.

Manila and HCMC/Hanoi recorded the highest growth rates in Total Revenue per available room at 19 and

13 percent, respectively.

EBITDA as a percentage of Total Revenue ranged from 19 percent (Manila) to 43 percent (HCMC/Hanoi).

ASEAN HOTEL INDUSTRY SURVEY 2018 6

TABLE 1 CITY SUMMARY 2017 VS. 2016

2017 2016 2017 2016 2017 2016

US Dollar Exchange Rate* 33.91 35.29 22,702.48 22,369.42 13,379.42 13,308.66

Number of Hotels 15 15 9 9 13 13

Number of Rooms Available per Day 5,188 5,261 3,056 3,308 3,402 3,572

Number of Rooms Occupied per Day 4,277 4,301 2,464 2,482 1,948 1,037

Hotel Occupancy 82% 82% 81% 75% 57% 53%

Average Daily Room Rate (USD) 130 128 143 136 153 155

RevPAR (USD) 107 105 115 102 88 82

Total Revenues per Available Room (USD) 68,169 69,304 71,176 62,782 76,368 65,031

Total Expenses per Available Room (USD) 48,774 46,085 39,563 34,792 52,585 48,768

GOP per Available Room (USD)** 22,177 20,946 31,613 23,732 23,804 16,314

GOP As a Percentage of Total Revenue (%) 34% 34% 51% 45% 32% 27%

EBITDA per Available Room (USD)** 11,571 8,703 25,116 18,680 15,448 8,614

As a Percentage of Total Revenue (%) 24% 20% 43% 40% 24% 18%

2017 2016 2017 2016 2017 2016

US Dollar Exchange Rate* 4.30 4.14 50.37 47.49 1.38 1.38

Number of Hotels 13 13 8 8 18 18

Number of Rooms Available per Day 5,283 5,521 3,331 2,996 8,126 7,494

Number of Rooms Occupied per Day 3,760 3,741 2,341 2,068 6,349 5,917

Hotel Occupancy 71% 68% 70% 69% 78% 79%

Average Daily Room Rate (USD) 95 102 126 127 256 275

RevPAR (USD) 67 69 88 88 200 217

Total Revenue per Available Room (USD) 38,957 41,522 63,319 53,172 134,456 148,269

Total Expenses per Available Room (USD) 25,208 27,359 46,758 38,684 83,981 92,476

GOP per Available Room (USD)** 13,749 14,275 16,627 11,304 50,475 55,854

GOP As a Percentage of Total Revenue (%) 37% 34% 27% 29% 38% 38%

EBITDA per Available Room (USD)** 5,997 7,182 9,153 3,664 35,515 39,871

As a Percentage of Total Revenue (%) 25% 21% 19% 19% 30% 31%

*X-rates.com 2017 Annual Average Rate

**GOP = Gross Operating Profit, EBITDA = Earnings Before Interest, Tax, Deprecation and Amortisation

KUALA LUMPUR MANILA SINGAPORE

BANGKOK HCMC / HANOI JAKARTA