Analysis by M. Brian Riley
Note: All financial figures presented in US$.
STR's global "bubble chart" update for the four weeks ending 9 November 2024 shows 84% of global markets with year-over-year growth in revenue per available room (RevPAR), a gain of seven percentage points from last month’s update (77%)
Japan continued to show some of the most consistent growth rates across its markets. In total, nine Japanese markets (of 11 total) experienced year-over-year RevPAR gains of more than 20% against their 2023 comp. This reflects the nation’s gaining economic momentum and how favorable exchange rates continue to draw international travelers.
In contrast, most Chinese markets (29 of 39) showed flat-to-negative RevPAR percentage changes during the cycle.
Among countries with substantial room counts (50k+ rooms) and sufficient hotel reporting levels, the top markets in terms of RevPAR dollars (actual) for the four-week period were the United Arab Emirates ($210) and Singapore ($183). With regards to top occupancy performance, the UAE (87.3%) also led all markets and was followed by Japan (82.0%), Ireland (79.6%), the United Kingdom (79.3%) and South Korea (78.8%)
Though most economists project China to finish 2024 with greater than 4% annual GDP growth, its domestic demand remains sluggish against its “normal” levels - this has resulted in lost pricing power as reflected in its recent $65 average daily rates (ADR) and $45 RevPAR. The latter was 10% less than the second lowest, Malaysia ($50).
As we noted in last month’s global analysis, Egypt and Turkey have been plagued with disruptive levels of inflation (28.7% and 60.0%, respectively, according to Oxford Economics) which artificially inflates those countries’ room revenues/ADR indicators after converting from local currencies to U.S. dollars. Currency pressures aside, Morocco (+41%), Hungary (+29%), Greece (+29%) and Japan (+25%) led in RevPAR growth among countries.
In total, 23 nations (of 45 reported) saw double-digit RevPAR growth for the four-week period, eight more than our report of last month. Excluding countries with more turbulent socioeconomic conditions, six nations experienced negative RevPAR comparisons to 2023, which was two fewer compared to our last update.
Excluding provincial areas, country markets and markets with inflation-boosted dollar-revenue values (Egypt and Turkey), the top market-level RevPAR gains occurred in Abu Dhabi (+53%), Sicily (+44%), Morocco (+41%), Kyoto (+38%), and Thailand South (+37%). The four markets (excluding Abu Dhabi) make their first appearance on the RevPAR growth leaderboard since the pandemic.
Providing some positive development in China, both Sichuan and Macau SAR demonstrated solid double-digit RevPAR growth returns these last four weeks.