Hotels: RevPAR significant increased in 2024

Despite some fluctuations throughout the year, a strong December propelled the US hospitality sector to a significant 4.8% increase in RevPAR compared to the previous year, marking the highest monthly growth since March 2023.

In Europe, RevPAR growth was steady throughout 2024, with only six weeks experiencing a decline. The continent closed the year on a high note, with countries like France, Italy, Germany, the United Kingdom, and Spain reporting more than 20% growth in RevPAR.

At the same time, however, the hotel industry in China struggled, with RevPAR percentage changes remaining negative for the three weeks ending on January 4, 2025. Only nine markets saw gains, including Beijing, Hong Kong, Macau, Shanghai, and Shenzhen.

The Middle East posted strong performances over the past year, with Kuwait and Lebanon leading the RevPAR growth. Japan topped the Asia-Pacific region, with a 27.6% increase in RevPAR over the last three weeks.

The Americas recorded the largest RevPAR gains in the past six weeks, driven by average daily rates (ADR) in countries like Argentina, Mexico, Puerto Rico, and Uruguay.

The New Year’s Eve period had a significant impact on the performance of the hospitality industry. Markets with higher prices saw the largest RevPAR gains, with Rio de Janeiro and Paris leading the way.

The strong performance during the last three weeks of December was unexpected, benefiting from the holidays and the compressed period between Thanksgiving and Christmas. The industry will be monitoring several factors, including the potential impact of the terrorist attack in New Orleans, weather conditions in the US and Europe, and changes in US policies following the President’s inauguration.