- Despite roller coaster-like fluctuations, the hotel industry sees significant global RevPAR growth in the final weeks of 2024.
- Europe and the Americas post high RevPAR gains, while China lags behind with negative growth.
Despite some fluctuations, the global hotel industry experienced notable revenue per available room (RevPAR) growth in the closing weeks of 2024. A strong December saw the US hotel industry record a RevPAR increase of 4.8% compared to the previous year, marking the most significant monthly growth since March 2023.
In Europe, RevPAR growth was consistent throughout 2024, with only six weeks showing declines. The continent ended the year on a high note, with countries like France, Italy, Germany, the UK, and Spain all recording over 20% growth in RevPAR.
However, China‘s hotel industry struggled, with RevPAR percentage changes remaining negative for the three weeks ending 4 January 2025. Only nine markets posted gains, including Beijing, Hong Kong, Macau, Shanghai, and Shenzhen.
The Middle East showed strong performance, with Kuwait and Lebanon leading the RevPAR increase. Japan was the highlight of the Asia-Pacific region, with a 27.6% RevPAR growth over the past three weeks.
The Americas, excluding the US, posted the largest RevPAR gains over the last six weeks, driven by average daily rate (ADR) gains in countries like Argentina, Mexico, Puerto Rico, and Uruguay.
New Year’s Eve significantly impacted the hotel industry’s performance. High-priced markets experienced the largest RevPAR gains, with Rio de Janeiro and Paris leading the pack.
The strong performance in the last three weeks of December was unexpected, benefiting from holiday shifts and the compressed period between Thanksgiving and Christmas. The industry will monitor various factors, such as the potential impact of the terrorist attack in New Orleans, weather conditions across the US and Europe, and changes in US policies following the Presidential Inauguration.
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