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 ($50).
As we noted in last month’s global analysis, Egypt and Turkey have been plagued with disruptive levels of inflation (28.7% and 60.0%, respectively, according to Oxford Economics) which artificially inflates those countries’ room revenues/ADR indicators after converting from local currencies to U.S. dollars. Currency pressures aside, Morocco (+41%), Hungary (+29%), Greece (+29%) and Japan (+25%) led in RevPAR growth among countries.
In total, 23 nations (of 45 reported) saw double-digit RevPAR growth for the four-week period, eight more than our report of last month. Excluding countries with more turbulent socioeconomic conditions, six nations experienced negative RevPAR comparisons to 2023, which was two fewer compared to our last update.
Excluding provincial areas, country markets and markets with inflation-boosted dollar-revenue values (Egypt and Turkey), the top market-level RevPAR gains occurred in Abu Dhabi (+53%), Sicily (+44%), Morocco (+41%), Kyoto (+38%), and Thailand South (+37%). The four markets (excluding Abu Dhabi) make their first appearance on the RevPAR growth leaderboard since the pandemic.
Providing some positive development in China, both Sichuan and Macau SAR demonstrated solid double-digit RevPAR growth returns these last four weeks.
*Analysis by M. Brian Riley. Note: All financial figures presented in US$.
About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with thirteen million average monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
This news release includes “forward-looking statements” including, without limitation, statements regarding CoStar’s expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that future media events will not sustain an increase in future occupancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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