25 February – 2 March 2024

Nations (markets) talked about:

• United States (Baltimore, Dallas, Houston, Las Vegas, Miami, Nashville, Oahu, Orlando, San Francisco, San Jose/Santa Cruz, Seattle)
• Indonesia (Bali, Jakarta), Spain (Barcelona), Singapore

Highlights

• U.S. RevPAR elevated after the earlier week’s decline.
• U.S. Group demand soars.
• World RevPAR strengthens regardless of weakening in China.
• Singapore bookings are up due to Taylor Swift.
• Is there a Leap Day affect?

U.S. Efficiency

Progress in income per out there rooms (RevPAR) returned to the U.S. following the earlier week’s lower. Occupancy held considerably regular, common every day fee (ADR) elevated, weekday (Monday-Wednesday) efficiency grew, and group demand exploded, surpassing each the 2023 and 2019 comparables.

At 62.5%, occupancy dropped a fraction (-0.2 share factors yr over yr) whereas reaching the best degree of 2024 to date (+0.5ppts from the prior week). Following a decline the earlier week, ADR elevated 2.7% yr over yr (YoY), driving RevPAR up 2.3%.

Day-of-Week Motion

Weekdays confirmed the strongest efficiency with occupancy up 1.4ppts and ADR rising 6.5%, yielding RevPAR progress of 8.9%. The High 25 Markets drove a lot of the efficiency with weekday RevPAR up 9.5%, lifted equally by ADR (+4.0%) and occupancy (+3.6ppts). Weekday efficiency throughout the remainder of the nation was ADR-driven (+2.7%), whereas occupancy declined barely (-0.4%). The weekend (Friday & Saturday) took the largest hit with RevPAR down greater than 4% each for the High 25 Markets and the remainder of the nation. The shoulder days (Sunday and Thursday) additionally confirmed a RevPAR decline (-0.6% for High 25 Markets and -1.3% within the remaining markets).

Market-Stage Leaders

Among the many High 25 Markets, Las Vegas once more took prime honors with RevPAR up 36.5%, a results of an ADR acquire of 25.4% and an occupancy carry of seven.1ppts—all pushed by the Worldwide Builders Present. Final yr, the occasion was a month earlier.

4 different markets, Seattle, Oahu, Houston, and Dallas, noticed double-digit RevPAR positive aspects because of different occasions. San Francisco additionally noticed robust RevPAR progress (+9.1%) through enchancment in occupancy. Throughout the following 25 largest markets, Baltimore and San Jose/Santa Cruz skilled double-digit RevPAR positive aspects, up 23.8% and 11.6%, respectively.

Extra Group Positive aspects

Group demand (amongst Luxurious and Higher Upscale inns) grew for the ninth straight week, growing 9.1% YoY and surpassing the 2019 comparable by 1.9%. Group ADR additionally continued to develop, holding above 5% YoY for the fourth consecutive week. Virtually all of the group demand progress occurred within the High 25 Markets, the place group occupancy was up 2.7ppts. Elsewhere, group occupancy was up 0.3ppts. 9 of the High 25 Markets exceeded the two.7-ppt common, together with Oahu, Las Vegas, Houston, Dallas, Seattle, Orlando, San Francisco, Miami, and Nashville.

Class-Stage Efficiency

RevPAR elevated for the highest three resort courses (Luxurious, Higher Upscale and Upscale), lifted by each ADR and occupancy. The continued power of group demand is a major tailwind for a lot of inns and principally for these within the Luxurious and Higher Upscale courses.

Higher Midscale inns have been basically flat with an occupancy decline offset by an ADR enhance. Midscale and Economic system class inns continued to see comfortable efficiency. Attainable explanations for this softness embody lack of group assembly services, which is presently offering a tailwind for the upper-tier inns and a common shift within the construction of those two resort courses with a major variety of properties closing and/or shifting out of the phase.

Evaluation of day-of-week traits revealed a sample just like the one seen general with weekdays recording the least adverse affect and weekends displaying probably the most adverse affect. Provided that weekends typically present the best demand for these segments, the decline of weekend journey in Midscale and Economic system class inns is extra pronounced.

Indonesia Positive aspects Occupancy

Taking a look at choose prime nations elsewhere on the earth, robust efficiency continued with eight of 10 nations seeing optimistic occupancy positive aspects and 6 of 10 seeing ADR will increase. Indonesia posted the most important occupancy acquire (+11.1ppts to 72.1%) with ADR up 11.3%. The occupancy enhance in Indonesia was supported by many markets all through the nation with the capital, Jakarta, up 8.6ppts YoY to 78.7%. Leisure vacation spot, Bali, grew occupancy 6.5ppts YoY to 67.4%.

Spain Stands Out

Spain posted the best precise occupancy among the many prime nations, up 4.7ppts YoY to 75%. Occupancy all through Spain was led by leisure markets. Moreover, Barcelona hosted the Cellular World Congress (MWC), an occasion that drew greater than 100,000 guests over a four-day interval. Spain’s ADR grew 8.2%, with Barcelona driving a big portion of the rise at +13.4% to US$379.

China slowing

China skilled one other sluggish week, post-Chinese language New 12 months, with YoY declines in each occupancy (-3.9ppts) and ADR (-3.7%). 12 months-over-year progress has clearly softened now that the nation is past the early-2023 comparables that have been influenced by reopening.

Wanting forward

It was a great week for the trade following a hiccup. As Spring journey gears up for a lot of the world, resort efficiency is predicted to develop. Constructive traits in ahead bookings, robust group demand buoyed by the robust efficiency seen over the previous 9 weeks, and an early spring break season within the U.S. ought to present tailwinds because the yr progresses.

World efficiency continued to be robust and is predicted to stay on a optimistic trajectory over the approaching months with related tailwinds, because the Taylor Swift Eras tour can also be anticipated to spice up resort efficiency. In subsequent week’s reporting, anticipate robust positive aspects in Singapore on condition that occupancy on the books (as of 4 March) for live performance dates (March 7-9) was up 11ppts.

Leap Day Impression

This previous week included Leap Day, which fell on a Thursday versus Saturday over the past Leap Day (2020). The final time Leap Day fell on a Thursday was in 1996. Whereas this further February day is included in weekly reporting, it won’t be noticeable in month-to-month reporting as it will likely be “grossed down” right into a 28-day month to permit like-for-like comparisons versus earlier years.

*Evaluation by Isaac Collazo, Chris Klauda, Will Anns.

About STR

STR supplies premium knowledge benchmarking, analytics and market insights for the worldwide hospitality trade. Based in 1985, STR maintains a presence in 15 nations with a North American headquarters in Hendersonville, Tennessee, a world headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the main supplier of economic actual property data, analytics and on-line marketplaces. For extra data, please go to str.com and costargroup.com.

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