Mainland China has now experienced 13 consecutive months of year-over-year RevPAR growth. STR analysts credit the increase in May to leisure business as growth was more noticeable in the transient segment, specifically on weekends. Continued growth in demand (room nights sold) will be key as China ranks first in the in the Asia Pacific region in rooms under construction (207,030). That total represents almost nine percent of the country’s existing supply.
Meanwhile, Japan’s 83.2 percent occupancy level was the second-highest for any May. Correspondingly, Vietnam reflected a solid demand growth of 7.1 percent which was somewhat countered by significant growth in supply, 6.1 percent, the largest uptick in new rooms in the country since March 2016.