CBRE: Hospitality industry recovering in 4Q

KUALA LUMPUR: CB Richard Ellis (Malaysia) (CBRE) reported that the hospitality industry, especially 5-star hotels, have recovered in 2010 with full-year occupancy for 5-star hotels reaching 68%, up from 2009s 58%, it said in its 4Q Marketview Kuala Lumpur Hospitality report on Friday, Mar 11.

"However, the hospitality market still lags behind its performance in 2008," it said. "Drivers for increased business and tourism spending may come from an improving economy (2011 GDP growth is project to be 6 to 6.5%) and a number of new initiatives being considered by the government."

The report said that although average room rates for 5-star hotels were lower than in 2009, the net effect was positive, as revenue per average (RevPAR) was RM224 in 2010 compared to RM196 in 2009, an increase of 14%. Also, RevPAR for 3, 4 and 5 star improved in 2010.

In 2010, the total supply of 3 to 5-star hotel rooms stood at 23,972 of with 5-star hotels accounted for 50%. There was a reduction in total supply figures in 2010 due to reclassification of some properties where 3-star hotels were downgraded and removed from the CBRE coverage. CBRE based their star rating assigned by the Ministry of Tourism.