Fewer global markets recording RevPAR growth, Japan a big exception

Analysis by Eddie Yeung

Note: All financial figures presented in US$.

STR's global "bubble chart" update for the four weeks ending 6 April 2024 shows 60% of markets with year-over-year growth in revenue per available room (RevPAR). That volume was noticeably less than the 77% of markets with growth in our last update, showing more of the world has reached a normalization period.

China contributed the most to the decline against 2023 levels, with 90% of its markets experiencing lower performance compared to last year. This further underscores the slowdown in the country's economy. When excluding China, 67% of global markets recorded higher RevPAR YoY.

Among countries with 50,000 rooms and adequate hotel reporting levels, Singapore, Saudi Arabia, France, Switzerland, and Japan led in RevPAR on an actual basis.

Japan joined the leaders in RevPAR for the first time as the country recorded the highest occupancy (80%) and its highest average daily rate (ADR) at $175.  The country’s currency depreciated even further in recent months, reducing the cost of travel in Japan and contributing to a 28% gain year over year.

The country-level leaders in year-over-year RevPAR growth were Japan, Vietnam, Saudi Arabia, the Czech Republic, and Norway. Despite being the slowest recovering market in 2023, Vietnam joined the leaderboard for the first time with RevPAR 20% higher than the comparable period in 2023.

Overall, 31 of 48 countries with more than 50,000 rooms recorded growth in RevPAR compared to 2023, which was five fewer than the previous update. Some of the leading European countries from 2023 showed signs of slowing down, with Switzerland experiencing a 13% decrease in RevPAR compared to the same period last year.

Excluding provincial areas and country markets, the top RevPAR performers were dominated by Japan. Four of the top five were from Japan—Tokyo, Hokkaido, Kyoto, and Osaka.

Prague rounded out the top five.

Growth in Japan was led by ADR gains, reaching as high as 49% in Kyoto. This is partially due to the recent depreciation of the Yen, marking its lowest level in recent years, pushing higher hotel rates to account for the exchange rate difference.