• Small Pickup in Global Hotel Markets with RevPAR Growth, Special Events Continue to Move the Needle – Image Credit Unsplash+   

STR’s global 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. 

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 four-week RevPAR average ($272), followed by Singapore ($223), Italy ($221) and France ($218). Asia Pacific markets dominated the lower end of global RevPAR performance. Part of this may be explained through normalized room pricing strategies and seasonal patterns. Additionally, uneven regional economies have led to distinct regional growth patterns for hotels.

Compared to the matched four weeks of last year, Egypt led the globe in annualized RevPAR gains (+54%), with Turkey (+32%) likewise demonstrating extraordinary growth driven by increasing average daily rate (ADR). It should be noted, however, that both these nations have undergone protracted periods of inflation with resultant currency devaluations – this inflates their room revenues/ADR indicators once converted from local currencies to U.S. Dollars. On a more level economic field, Morocco (+31%), Hungary (+25%) and Norway (23%) round out the top RevPAR gaining countries for the period.

In total, 19 nations (of 45 reported) saw double-digit RevPAR growth for the four-week period. Excluding countries with more turbulent socioeconomic conditions, nine nations experienced negative RevPAR comparisons to 2023, which was one more since our last update. 

Excluding provincial areas and country markets, the top market-level RevPAR gains occurred in Northern Sumatra (47%), Mexico City (+45%), Red Sea Resorts (+44%), Rio de Janeiro (+44%) and Turkish Riviera (41%). Additionally, special events continue to drive select markets’ indicators, such as concerts in Rio de Janeiro. On the downside, China’s economy continues to disrupt a wide span of its markets. In less negative terms, both Munich and New Delhi demonstrate recent negative RevPAR comps from last year due to the loss/off-set of key (positive) market-impactful events.

This article originally appeared on STR.

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