Analysis by M. Brian Riley
Note: All financial figures presented in US$.
STR’s global “bubble chart” update for the four weeks ending 12 October 2024 shows 77% of markets with year-over-year growth in revenue per available room (RevPAR). That was a substantial 14-point increase in the proportion of global hotel markets experiencing matched period RevPAR gains in last month’s update
Among countries with 50,000 rooms and sufficient hotel reporting levels, Greece ($255), Singapore ($241), Italy ($240), France ($232), and Switzerland ($196) posted the highest RevPAR on an actualized basis. That was the same set of countries as last month.
With Singapore as the exception, Asia Pacific markets stand out on the lower end of RevPAR performance because of lower average daily rate (ADR).
Compared to the matched four weeks of last year, Egypt led the globe in annualized RevPAR gains (+42%) with Turkey (+36%) likewise demonstrating high growth driven by ADR. It should be noted, however, each of these nations are in protracted periods of inflation with resultant currency devaluations – this artificially inflates room revenues/ADR indicators after converting from local currencies to U.S. dollars. Currency pressures largely aside, Japan (+22%), Singapore (+22%) and Brazil (20%) led in RevPAR growth among countries.
In total, 15 nations (of 45 reported) saw double-digit RevPAR growth for the four-week period. Excluding countries with more turbulent socioeconomic conditions, eight nations experienced negative RevPAR comparisons to 2023, which was one fewer since our last update.
Excluding provincial areas and country markets, the top market-level RevPAR gains occurred in the Red Sea Resorts (+52%), Turkish Riveria (+37%), Istanbul (+36%), Mexico City (+35%) and Tokyo (+33%).
Tokyo makes its first appearance on the list of top global RevPAR growth markets since the pandemic. Japan overall is experiencing an economic resurgence and gaining recognition among international travelers because of the country’s relative affordability and favorable exchange rates. In contrast, Chinese and New Zealand markets continue facing long-term economic headwinds. China’s Sanya market, for example, has likely lost some of its short-term pricing power due to reduced demand among higher-budget travelers who could be skipping domestic leisure-oriented destinations for other international markets.
