More Asian countries stay ahead of 2023 levels, Japan maintains significant rate growth

Analysis by Eddie Yeung

Note: All financial figures presented in US$.

STR's global "bubble chart" update for the four weeks ending 18 May 2024 shows 72% of markets with year-over-year growth in revenue per available room (RevPAR). That level was up from 60% in the previous update. Japan and South East Asian market led the growth.

Among countries with 50,000 rooms and adequate hotel reporting levels, Singapore, Switzerland, France, and Italy posted the highest RevPAR on an actual basis. While Singapore and Switzerland remained leaders in actual levels, their RevPAR was moderately lower year over year by 1.7% and 5.2%, respectively.

Excluding countries with turbulent socioeconomic conditions, the leaders in year-over-year RevPAR growth were Japan, Indonesia, the Dominican Republic, the Czech Republic, and Malaysia. Japan again recorded high ADR growth of more than 20%, partly due to depreciation of the Yen. Read further analysis on recent Japan performance here.

Overall, 35 of 48 countries with hotel supply greater than 50,000 rooms recorded growth in RevPAR from 2023. Similar to previous updates, more Southeast Asian countries are seeing growth contribution from occupancy, as most countries in the region were still seeing soft demand coming out of the pandemic in the first half of 2023. For this most recent period, Vietnam, Indonesia, Thailand, and Malaysia all saw occupancy grow by more than 5%.

Excluding provincial areas and country markets, the top RevPAR performers were again led by Japan’s international markets—Tokyo, Kyoto, and Osaka. Tokyo and Kyoto recorded staggering 40% and 31% ADR growth compared to last year.

Jakarta and Abu Dhabi were other markets amongst the leaders for the 28-day period. With more holidays announced for 2024 compared to 2023, domestic demand in Indonesia is expected to rise. Occupancy in Jakarta reached 70% in the last 28-day period, which was 13% higher than last year.