The host of six Taylor Swift concerts, Singapore's hotel industry posted its highest March average daily rate (ADR) and revenue per available room (RevPAR) on record, according to preliminary data from CoStar.
RevPAR improved 2.0% year over year (YoY) in February, reflecting the continued return to pre-COVID patterns of low single-digit gains. Remove Las Vegas from the equation, however, and February RevPAR was down 1.4% YoY. The overall RevPAR increase was due to a solid YoY increase (+3.9%) in ADR, which was partially offset by an occupancy decline of 1.1 percentage points to 58.9%.
Second consecutive weekly U.S. RevPAR decrease - Weakness in ADR growth persists - Demand bifurcating, growing in upper tiers and falling in lower tiers - Global RevPAR declines for the first time since 2021
STR's global update as of 9 March 2024 shows that 77% of markets increased revenue per available room (RevPAR) from the comparable period in 2023, which was 4% more than the last update. Occupancy and average daily rate (ADR) were also steadily higher than last year.
Taylor Swift kicked off the second international leg of her wildly successful Eras Tour in early February, and Asia Pacific hoteliers were, in fact, 'ready for it'. The seventeen-night leg gave a much-needed performance boost to Tokyo, Sydney, Melbourne, and Singapore hotels.
Group business is driving industry performance. For the 10th consecutive week, group demand (among Luxury and Upper Upscale hotels) increased, rising 7.4% YoY. Group demand was just one percent below 2019.
While 2023 Lunar New Year produced positive performance, especially as the first since 2019 outside of a COVID lockdown, this year's holiday brought a different level of success to the country.
Spring break season is officially here, and tracking school calendar data becomes critical during this time in order to predict travel demand across the U.S. The swings in academic calendar patterns from year to year can generate substantial waves in hotel performance, as vacation scheduling directly impacts over 50 million public K-12 students and their families across the country.
In this global update, STR focuses on performance, pipeline, and factors that influenced the data in 2023, while also looking ahead to what’s in store for the rest of 2024.
Growth in revenue per available rooms (RevPAR) returned to the U.S. following the previous week's decrease. Occupancy held somewhat steady, average daily rate (ADR) increased, weekday (Monday-Wednesday) performance grew, and group demand exploded, surpassing both the 2023 and 2019 comparables. Looking at select top countries elsewhere in the world, strong performance continued with eight of 10 countries seeing positive occupancy gains and six of 10 seeing ADR increases.