revpar growth
Small Pickup in Global Markets With RevPAR Growth, Special Events Continue to Move the Needle
STR | October 1, 2024
STR's global "bubble chart" update for the four weeks ending 21 September 2024 shows 63% of markets with year-over-year growth in revenue per available room (RevPAR). That was a two-point increase in the proportion of global markets experiencing matched period RevPAR gains in last month's update. — Source: STR Among countries with 50,000 rooms and sufficient hotel reporting levels, France, Greece, Singapore, Switzerland and Ireland posted the highest RevPAR on an actualized basis. That was mostly the same set of higher-priced countries as last month except for Singapore replacing Ireland. Greece led all nations with the highest ...
CBRE Expects RevPAR Growth to Improve in H2 2024, Driven by Holiday and International Travel
CBRE Group, Inc. | May 16, 2024
Dallas – May 16, 2024 – CBRE expects revenue per available room (RevPAR) growth to improve in the second half of 2024, following a weaker-than-expected first quarter. CBRE’s latest forecast projects a 2.0% increase in RevPAR growth for 2024, down from the 3.0% estimated in February 2024. RevPAR is now expected to grow by 3% for the remainder of the year, driven by international tourists, holiday travel and limited supply growth. CBRE forecasts GDP growth of 2.3% and average inflation of 3.2% in 2024. The performance of the lodging industry is closely tied to the strength of the economy, as there is typically a strong correlation be...
More Than Half of the Global Markets Post RevPAR Growth of More Than 20% Versus 2019
STR | March 29, 2023
STR’s global “bubble chart” update through 18 March 2023 shows growing momentum in the Asia Pacific region and more than half of markets globally with better than 20% growth in revenue per available room (RevPAR) versus 2019. Among all countries with room supply of more than 50,000 rooms, Israel, Switzerland, Singapore, the Dominican Republican and New Zealand led in RevPAR on an actual basis. That put Singapore in the top RevPAR spot for two consecutive running 28-day periods. Singapore was also one of the leaders in occupancy along with two other Asia Pacific countries—Thailand and New Zealand. All countries in the RevPAR ...
How the Composition of RevPAR Growth Impacts Changes in Profits
Robert Mandelbaum | December 18, 2017
By Robert Mandelbaum To project changes in profits we obviously need to look at the expected relative changes in revenues and expenses. Profit growth can only be realized when the dollar value of the change in revenue exceeds the dollar value of the change in expenses. Within the lodging industry, there are other metrics that have historically been reliable indicators to measure the potential for hotel profit growth. One is the change in rooms revenue, or RevPAR. Using data from our annual Trends® in the Hotel Industry, we find an 86 percent correlation between annual changes in RevPAR and Gross Operating Profit (GOP) from 1960 to 2...
Rising Costs Prove Challenge to UK Hotels Prompting Slowdown in RevPAR Growth
HVS | November 8, 2017
08 November 2017, London: Some investors could become increasingly wary of hotel assets as RevPAR plateaus amid predictions of labour shortages and increasing costs, according to Hotel Bulletin Q3 2017 published this week by HVS, AlixPartners, STR and AM:PM. The Bulletin reports that in Q3 2017 average growth in RevPAR (rooms revenue per available room) at 5% was the lowest level since Q1 2016, although the long-term outlook for UK hotels remains firmly positive. While these results outpace UK GDP growth, which has averaged below 1% in the same period, the impact of a lower growth environment, global political uncertainty and an increas...
An Analysis of Franchise Fees
Robert Mandelbaum | September 20, 2017
By Robert Mandelbaum In the current market environment of modest growth in revenue, hotel owners and operators are paying extra attention to their operating expenses. Per the June 2017 edition of Hotel Horizons®, RevPAR growth in the U.S. is forecast to remain under 3.0 percent from 2018 through 2021. Therefore, it will be management's ability to control expenses that will enable profits to grow. One expense that management has less control over are franchise fees. Most of the fees charged by the franchising companies (brands) are assessed as a percent of a source of revenue. Therefore, owners and operators have mixed emotions when ...
PKF Hospitality Research Not Concerned About the Current Tumultuous Stock Market
PKF Hospitality Research, a CBRE Company | September 1, 2015
Hotel RevPAR Growth Expected to Remain Above Long-Run Average Through 2018 September 1, 2015, Atlanta, Ga. – Recent gyrations on Wall Street may have hoteliers questioning whether this is the beginning of the end to the good times that have characterized the U.S. hotel industry for the past five years. PKF Hospitality Research (PKF-HR), a CBRE Company, does not believe so and is reaffirming its near-to-mid-term forecast for strong lodging financial performance. According to PKF-HR's recently released September 2015 edition of Hotel Horizons®, U.S. hotels will continue to enjoy above long-run average revenue per available room (RevPAR...
Five Methods to Increasing Your Revenue per Available Room (RevPAR)
Michels & Taylor | August 21, 2015
A common problem often facing hoteliers is how to increase revenue per available room. Jesper Johansen, Revenue Director Michel's & Taylor Managed Hotel division, has provided his tried and tested solutions to this age old problem. Method 1: Although considered second nature by most modern revenue leaders, the adoption of length of stay (LOS) restrictions is the still the most effective way to increase revenue per room. To make a length of stay strategy even more effective, try implementing it through rate levels or market segmentation. However, to implement this strategy successfully requires the hotel to understand its booking pat...
