STR Weekly Insights: 11-17 February 2024

Highlights

• Tremendous Bowl lifted total U.S. efficiency, once more.
• Celebrations and climate delays propelled Monday.
• Group demand up six consecutive weeks.
• Taylor Swift, Taylor Swift, Taylor Swift.
• Common election slows Indonesia.

U.S. Efficiency

Tremendous Bowl Sunday, a high-performing Monday, and a tender President’s Day weekend had been a very powerful elements within the newest week of information. U.S. RevPAR elevated 1.6% yr over yr, pushed solely by ADR (+4.2%), whereas occupancy declined for an eighth consecutive week. Sunday produced the biggest RevPAR acquire of the week (+19%) adopted by Monday (+11.6%). Tremendous Bowl Sunday in Las Vegas drove the general Sunday enhance. Excluding Las Vegas, U.S. Sunday RevPAR decreased 4.8%. Nevertheless, Monday’s RevPAR enhance held at +10.0%. The robust Monday efficiency was more than likely a mixture of Mardi Gras, Chinese language New 12 months and different celebrations, main occasions, and climate points.

The remainder of the week noticed steadily declining RevPAR adjustments. Tuesday confirmed a constructive RevPAR comparability (+1.6%), whereas the following 4 days steadily decreased with Wednesday and Thursday down 1.4% and Presidents’ Day weekend (Friday & Saturday) down 3.6%. Occupancy for Presidents’ Day weekend, which generally attracts elevated leisure journey, was 71.4%, which was the very best weekend occupancy since November though 2.6 ppts decrease than final yr’s Presidents’ Day weekend. ADR was up on all days besides on Saturday, however from Wednesday by means of Friday, ADR development was beneath the speed of inflation. Occupancy decreased for all days besides Monday (+1.9ppts). Decreases hovered round -2 proportion factors (ppts) Tuesday by means of Friday. Saturday decreased 3.1ppts. 

The Prime 25 Markets had a greater week than the remainder of the nation. RevPAR elevated 7.3%, led utterly by ADR and the Tremendous Bowl increase. Excluding Las Vegas, RevPAR fell 1.1% with each ADR and occupancy down (-0.5% and -0.4ppts, respectively). The Prime 25 Markets mirrored the day-of-week efficiency seen for the nation total with Monday posting the very best RevPAR acquire adopted by softening RevPAR efficiency every day with Saturday at -4.7%.

Particular person Prime 25 Market efficiency was blended with an equal variety of markets posting constructive and destructive RevPAR adjustments. Prime performers had been Las Vegas (+81.4%), San Francisco (+14.4%) and Oahu (+14.3%).

On Tremendous Bowl Sunday, Las Vegas noticed an ADR of US$808 and occupancy of 81%. The market continued to profit from the Tremendous Bowl within the the rest of the week with the following six days seeing RevPAR up 35.2% in comparison with the identical six days final yr.

Oahu’s robust efficiency was lifted by market occasions, and San Francisco benefitted from a big medical convention. New Orleans’ Mardi Gras celebrations resulted in RevPAR positive factors of greater than 100% on Sunday by means of Tuesday resulting from a calendar shift. A yr in the past, Mardi Gras occurred two weeks later. Monday was a terrific day throughout the Prime 25 Markets with all however two markets posting RevPAR development, and 17 markets seeing double-digit positive factors. Along with the markets already talked about, prime Monday performers (+25%) had been Boston, Philadelphia, Denver, and Washington D.C. This surprisingly robust Monday efficiency is more than likely resulting from a mixture of occasions, together with celebrations and climate delays.

Throughout the remainder of the nation, Monday’s RevPAR was additionally robust, up 4.1% with the rest of the week down. Indianapolis was the perfect performing market exterior of the Prime 25 Markets resulting from its internet hosting of the NBA All-Star recreation on Sunday, February 18. The market noticed regular RevPAR positive factors all week with Thursday by means of Saturday development surpassing 100%.

Group demand continued to strengthen with Luxurious and Higher Upscale motels up for a sixth consecutive week, rising 3.4% in comparison with the identical week final yr and up 7.9% over the previous 4 weeks. Group ADR was up 8.5% with the measure rising 5.8% over the previous 4 weeks. Fifteen of the Prime 25 Markets noticed year-over-year group occupancy positive factors. Atlanta, Boston, Denver, Las Vegas, Oahu, and San Francisco posted the biggest yr over yr occupancy enhance. These markets, together with Dallas, Minneapolis, Philadelphia, and Tampa additionally noticed 7%+ group ADR will increase.

International lodge efficiency

The ten highest lodge provide nations exterior of the U.S. noticed occupancy that was largely in keeping with the comparable week final yr. Seven of the ten nations noticed an occupancy change between -2ppts and +2ppts. The constructive efficiency included Spain (+4.7ppts to 71.7%) and Australia (+4.6ppts to 77.1%). ADR for the highest 10 in combination was up 18.9%, leading to a RevPAR acquire of 20.7%. This yr, in contrast to final yr, we have now seen a wider variation in weekly RevPAR development. This was anticipated as the massive recovery-led efficiency wanes. 

The robust occupancy efficiency in Spain this week continued to be pushed by the jap Mediterranean coast area, up 13.8ppts to 69.5%, and the southern Andalucía area up 9.7ppts to 72.6%. RevPAR was up 36.8% in Mediterranean Coast, pushed principally by occupancy development. In Andalucía, ADR was largely chargeable for RevPAR development of 31.6%.

In Australia, occupancy was in keeping with 2018, which matches the times of week this yr precisely up till leap day. Occupancy was up 4.6ppts as in comparison with 4.8ppts in 2018. Nevertheless, absolute occupancy was about 10ppts decrease than in 2018. The nation’s ADR, nonetheless, was up 11.5%, in no small half resulting from Taylor Swift’s largest ever performances in Melbourne, boosting ADR for town 36.8%. For her 4 upcoming performances in Sydney, occupancy on the books was at 86%, as proven by way of Ahead STAR.

Indonesia noticed the biggest occupancy decline of the highest 10 nations, down 15.3ppts to 48.9%. Whereas some Chinese language New 12 months celebrations occurred at first of the week, 14 February was the nation’s normal election with greater than 200 million registered voters unfold out over the nation’s 6,000 inhabited islands. Because of this, 10 of the nation’s 12 markets noticed occupancy decreases. An analogous decline in occupancy was seen in the course of the nation’s final election in 2019.

Wanting forward

As Spring blooms, ADR is predicted to drive RevPAR with occupancy moderating. Count on subsequent week’s information (week ending February 24) to point out softer group demand because of the Presidents’ Day vacation. Group demand is then anticipated to develop up till the week earlier than Easter (31 March). International efficiency may even be impacted by the Easter vacation together with sporting occasions, concert events (Taylor Swift’s worldwide tour in Australia and Singapore), conferences/conventions, and the change of seasons, identical to earlier than the pandemic.

This text initially appeared on STR.