Nations (markets) talked about:
- United States: Phoenix, Philadelphia, Dallas, Cleveland, Augusta
- World: China, Canada (Montreal, Toronto), Germany, Mexico
Highlights
- Photo voltaic eclipse delivered record-breaking efficiency Sunday and Monday
- RevPAR comparisons turned unfavorable Thursday via Saturday – a photo voltaic eclipse hangover?
- Group demand remained robust.
- Sporting occasions dominated the day throughout markets giant and small.
- Regular patterns return in subsequent week’s information, offering perception into Q2 efficiency.
U.S. Efficiency: 7-13 April 2024
Much like the earlier week, U.S. lodge efficiency ending 13 April 2024 mirrored a straightforward comparability to Easter final yr and the impression of the photo voltaic eclipse. Income per out there room (RevPAR) rose 5.8% pushed by almost equal positive aspects in occupancy and common every day price (ADR). Nevertheless, the expansion was not equally distributed throughout all days of the week.
RevPAR positive aspects got here primarily from Sunday and Monday, which have been up 42.3% and 23% respectively. Thereafter, progress tapered to eight.3% on Tuesday and a couple of% on Wednesday. Extra regarding, RevPAR decreased from Thursday via Saturday.
The impression of the photo voltaic eclipse can’t be understated. Regardless of solely 17% of U.S. submarkets (120 of 687 U.S. submarkets) being within the path, these submarkets accounted for 59% of the entire U.S. demand progress. A lot of the improve got here on Sunday and Monday.
Occupancy on Sunday and Monday surpassed 80% within the Luxurious/Higher Upscale and Upscale/Higher Midscale lessons and was close to 70% within the Midscale/Economic system lessons. Within the remaining submarkets, occupancy hit 61% in Luxurious/Higher Upscale, 58% Upscale/Higher Midscale and 50% in Midscale/Economic system.
Eclipse submarket two-day ADR was US$295 in Luxurious/Higher Upscale, US$195 in Upscale/Higher Midscale and US$115 in Midscale/Economic system. ADR was even larger on Sunday, the day earlier than the eclipse. We consider that the efficiency seen with the eclipse provides validity to the concept that we’ve got transitioned from “revenge” to “selective” journey. In-depth evaluation of the eclipse and comparisons to the 2017 eclipse may be discovered right here.
Whereas it’s true that year-over-year comparisons have been straightforward as a result of Easter 2023, the expansion in non-eclipse areas was not that spectacular as weekly RevPAR was up by only one.8% with Sunday and Monday rising within the low teenagers. Within the eclipse markets, weekly RevPAR elevated 35.9%. All areas of the nation noticed RevPAR lower Thursday via Saturday.
Occupancy was sturdy in a lot of the Prime 25 Markets, led by Las Vegas (86.6%) and New York Metropolis (82.7%). Many others have been above 70% together with Los Angeles, Nashville, and Washington, DC.
Weekly RevPAR progress was highest in Philadelphia (+45.7%), which noticed double-digit positive aspects daily beginning with Sunday (+180%) as WrestleMania 40 concluded. Dallas had the second highest weekly RevPAR acquire (+38.9%) among the many Prime 25, propelled by the eclipse. Phoenix additionally had week because it hosted the NCAA Ultimate 4, leading to RevPAR rising by 129% on Sunday, 78.5% on Monday and ending the week up 19.9% with occupancy close to 80%.
Exterior the Prime 25 Markets, Cleveland hosted the NCAA ladies’s basketball championship recreation and noticed RevPAR rise by 519% on Sunday. Cleveland was additionally within the eclipse path which drove efficiency exponentially with weekly RevPAR up 85.1% on an occupancy stage of 72.1%.
The Masters Match in Augusta resulted within the nation’s largest RevPAR for the week (+389.6%).
A lot has been written concerning the weaker ticket gross sales for the annual Coachella Music and Arts Competition in Indio, CA (Palm Springs), and lodge information confirmed the outcomes as occupancy was down 5.7 share factors on Friday and Saturday, the primary two days of the competition. ADR additionally fell (-9.7%). Weekend two (19-21 April) will seemingly additionally see decreases because the competition had not offered out on the time of penning this evaluation.
Group demand continues to shine shiny
Group demand continued to be robust, reaching the second highest demand stage of the yr to date. Together with the latest week, group demand has surpassed 2 million room nights 4 occasions this yr. San Diego, Philadelphia, and Nashville noticed the best group occupancy positive aspects. Group ADR elevated a wholesome 9.1% with Philadelphia and Phoenix seeing the biggest ADR positive aspects (20%+).
World efficiency continued to develop
World occupancy reached the best stage of the yr (68.4%). Key nation occupancy ranged from 76.4% within the U.Ok. to 59.3% in Indonesia. Spain, Italy and China all noticed occupancy above 72%, with solely China displaying a year-over-year lower. Canada benefited from the eclipse with RevPAR rising by 16.9%, because the eclipse was seen in two of Canada’s largest cities. Montreal’s RevPAR was up 34.4%, whereas Toronto noticed a 27.6% acquire. Mexico, additionally within the path of the eclipse, didn’t see a notable improve country-wide. Nevertheless, the northern Mexican markets posted notable RevPAR positive aspects that have been offset by RevPAR declines in different components of the nation.
Wanting forward
The eclipse drove U.S. efficiency along with the straightforward year-over-year comparisons. Subsequent week’s information ought to be extra regular. Later within the month, we’ll see a pause in group demand as a result of Passover observance. Final yr’s Taylor Swift Eras tour from mid-March via August will create a efficiency gap, leading to softness in these markets that benefited from it. Varied indicators (rising debt, delinquencies, inflation, and many others.) proceed to level to slower leisure journey this yr. We count on that particular occasions will drive journey however that drive will likely be extra selective than it was a yr in the past.
Globally, the trade continued to strengthen. The 2024 Paris Olympics together with rising worldwide journey coupled with Taylor Swift’s tour bodes properly for European markets.
*Evaluation by Isaac Collazo and Chris Klauda.
About STR
STR gives premium information 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 business actual property info, analytics and on-line marketplaces. For extra info, please go to str.com and costargroup.com.
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