Who said productivity is declining?

GLOBAL REPORT – “Normalizing” results continue to look very good for hoteliers as new STR data for the four weeks ending June 15 reveals that 65% of markets saw year-over-year RevPAR growth. That percentage remained between 60% and 77%, even as most of the world is firmly entrenched in a period of normalization.

Among countries with at least 50,000 rooms and adequate hotel reporting, Greece, Singapore, Switzerland, France and Italy recorded the highest RevPAR in real terms. Four of these five leaders reported higher RevPAR than the comparable period last year, with only France seeing a year-over-year decline as the country prepares for the Paris Olympics in July. It is also worth noting that ADR in Greece reached $389 with occupancy above 83%, even before the summer holidays began.

Excluding countries with turbulent socio-economic conditions, the year-over-year RevPAR growth leaders were Saudi Arabia, Greece, Japan, Indonesia and South Korea. Japan remained at the top with strong growth in the index. Growth among these leaders was largely driven by the country’s largest destinations. For example, Bali saw RevPAR growth of over 26% and Seoul 25%. Saudi Arabia’s performance was impacted by the shift in the religious calendar, with ADR growth exceeding 50%.

In Germany, it is usually business events that influence financial results, and Düsseldorf’s results were influenced by the organisation of several industry trade fairs held every three and four years.

Additionally, and as expected, Eras Tour made its mark in Europe, with Madrid seeing a 36% increase in RevPAR compared to last year.

Overall, 40 of the 48 countries with more than 50,000 hotel rooms saw their RevPAR increase from 2023. This was the highest result since STR began these updates a few years ago.

Excluding provincial areas and rural markets, the best RevPAR results were achieved by Tokyo, Kyoto, Düsseldorf, Athens and Madrid.