Invincible Investment Corporation's domestic hotels grew revenue per available room (RevPAR) 6.8% in September, to ¥13,178, but the average hides a split. Kansai RevPAR fell 51.1% to ¥8,718, while the portfolio outside Kansai rose 17.2% to ¥13,706.
The Kansai fall came from both lines. Occupancy there was 75.0%, down 12.4 points, and the average daily rate was ¥11,629, down 43.0%. Across the 101 hotels, occupancy slipped 0.6 points to 85.2% while the daily rate rose 7.6% to ¥15,461. Outside Kansai, occupancy rose 0.7 points and the rate rose 16.2%.
Other regions: Chubu RevPAR rose 32.8%, Kyushu 23.1% and Hokkaido 16.2%, while Tokyo's 23 wards managed 1.2%. These are figures for the REIT's own hotels run by Iconia Hospitality and its subsidiaries, not market-wide data.
The issuer attributes the month to the loss of demand tied to the Osaka Expo and fewer Chinese visitors amid worsening Japan-China relations. It says a more favourable Silver Week calendar than a year earlier tipped the result positive. It describes inbound demand from outside China as broadly solid and sees almost no impact from the deterioration in the Middle East. The Japan National Tourism Organization estimated September arrivals at 3.10 million, down 5.0%.
For October, Invincible expects domestic RevPAR to rise about 5.3% on a year earlier, or about 11.2% outside Kansai. Earlier Tokyo Brief coverage
The two Cayman hotels posted RevPAR of $109, up 79.4%, on a 36.0% occupancy rate. The issuer cites higher group bookings at one hotel and a room tower that was under renovation a year earlier at the other.