According to the HotelBenchmark Survey by Deloitte, room revenue per available room across the Asian region is up 14.1% to US$97 over figures in 2006, but Shanghai has slipped.

China is seeing huge developments in its hotel industry. New hotel openings in all sectors of the market have diluted occupancy levels and slowed performance growth. Shanghai, which will see its supply grow by over 6,000 rooms in 2007, has unfortunately seen revPAR fall 1.2% to US$97 in the first half of 2007, although this remains on a par with the regional average.

Much has been reported about China's growth, but their heavyweight partner India is shining in 2007. With a limited supply of rooms and increased demand in the business travel sector, Mumbai saw the region's third highest revPAR growth, an impressive 46.7% increase to US$197. This was again driven by soaring average room rates, which at US$253 are the highest in Asia.

Lorna Clarke, Executive Director of HotelBenchmark at Deloitte says, "The Asia Pacific hotel market continues to perform well with performance dominated by improvements in average room rates. The growth of low-cost airlines is making the region more accessible, allowing tourists to travel more easily to a wider range of destinations. Ten years on from the start of the East Asia's financial crisis and regional economies are also performing well, match this with greater intra-regional business travel and you can see how hoteliers are able to continue to push average room rates upwards."

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