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 ($196) posted the highest RevPAR on an actualized basis. That was the same set of countries as last month.
With Singapore as the exception, Asia Pacific markets stand out on the lower end of RevPAR performance because of lower average daily rate (ADR).
Compared to the matched four weeks of last year, Egypt led the globe in annualized RevPAR gains (+42%) with Turkey (+36%) likewise demonstrating high growth driven by ADR. It should be noted, however, each of these nations are in protracted periods of inflation with resultant currency devaluations – this artificially inflates room revenues/ADR indicators after converting from local currencies to U.S. dollars. Currency pressures largely aside, Japan (+22%), Singapore (+22%) and Brazil (20%) led in RevPAR growth among countries.
In total, 15 nations (of 45 reported) saw double-digit RevPAR growth for the four-week period. Excluding countries with more turbulent socioeconomic conditions, eight nations experienced negative RevPAR comparisons to 2023, which was one fewer since our last update.
Excluding provincial areas and country markets, the top market-level RevPAR gains occurred in the Red Sea Resorts (+52%), Turkish Riveria (+37%), Istanbul (+36%), Mexico City (+35%) and Tokyo (+33%).
Tokyo makes its first appearance on the list of top global RevPAR growth markets since the pandemic. Japan overall is experiencing an economic resurgence and gaining recognition among international travelers because of the country’s relative affordability and favorable exchange rates. In contrast, Chinese and New Zealand markets continue facing long-term economic headwinds. China’s Sanya market, for example, has likely lost some of its short-term pricing power due to reduced demand among higher-budget travelers who could be skipping domestic leisure-oriented destinations for other international markets.
*Analysis by M. Brian Riley.
Note: All financial figures presented in US$.
About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attracted over 183 million monthly average unique visitors in the second quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
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