All figures are in U.S. dollars constant currency.
Highlights
- Weekdays are slower than weekends, but the weekend is stronger
- Performance of Top 25 Markets balanced by other markets
- Group Demand Affected by July 4th and JuneteenthThe th Calendar Shift
- Global RevPAR remains unchanged
Business retreats are not the only ones that attract leisure travellers
The last week in June saw a healthy weekend performance, but this was countered by a decline in weekday performance. This resulted in a flat week in U.S. hotel. Revenue per available rooms (RevPAR), the measure of revenue generated by each room, was unchanged (-1.0%). This is due to no change in the average daily rate (ADR), 0.0%, or occupancy (-0.1 percentage point (ppts)).
There was movement in day-of-week performance with weekend (Friday & Saturday) RevPAR advancing 3.2%, while weekdays (Monday – Wednesday) retreated 2.2%. The shoulder days also fell (-0.8%). Demand will fluctuate daily and weekly if business travel does not return to pre-pandemic levels.
This week’s chain scale bifurcation is much more subdued. Luxury posted the largest RevPAR increase (+1.7%) while Economy experienced the steepest drop (-1.8%). The performance of hotels across all chains was influenced by the day of the week. Weekends were the best performers for all chain levels except Economy. All chain scales experienced declining RevPAR during the weekdays. All chain scales, except Luxury, saw a drop in RevPAR during the shoulder season.
Rest of the U.S. outperformed the Top 25 Markets
It was a lackluster week for the Top 25 Markets (T25) while the rest of the country posted a respectable performance. T25 RevPAR dipped 2.8% driven by weekday (-4.8%) and shoulder (-4.0%) day declines. The weekend was positive, up 1.3%. Only nine of the T25 markets posted positive RevPAR. There were a few bright spots with Philadelphia, Dallas, and Orlando increasing RevPAR by double digits.
In other large city markets, RevPAR increased 1.9%, driven by the weekend (+6.0%) and shoulder days (+1.7%). Weekday RevPAR, on the other hand, declined 1.1%. Forty of the 70 STR-defined large city markets produced positive RevPAR, with 17 reporting double-digit growth. Top markets were Chattanooga, Madison, Pittsburgh and Cleveland, each reporting 25% or greater RevPAR gains.
RevPAR in non-metro/rural areas rose 2.1% lifted by the weekend (+3.6%). Shoulder days and weekdays also advanced 2.1% and 0.8%, respectively. RevPAR increased in over two-thirds of the 77 areas (53/77) identified as non-metro/rural. Louisiana North, Wisconsin South and North, and Missouri North topped the leader board in RevPAR gains.
Group demand held, lifted by markets outside the T25
Group demand across Luxury and Upper Upscale hotels was flat (at 0.1%) with an increase of 5.2% on the weekend, offset by an average 1.7% decline over the other five days of the week.
Some of the day-of-week shift was possibly due to the days on which Juneteenth and July 4th fell last year (Wednesday and Thursday, respectively) compared to this year (Thursday and Friday, respectively).
The shift this year appears to have negatively impacted weekdays and positively impacted the weekend. Additionally, this shift may explain the boost to group demand provided by non-T25 markets, rising 4.2%, while T25 group demand declined 3.1%. Dallas, Miami and Philadelphia were T25 bright spots, posting healthy group demand increases.
Most major countries posted positive performance
Global RevPAR was flat (0.2%) with ADR advances (1.0%) offset by occupancy declines (-0.6ppts). Interestingly, the day-of-week pattern seen in the U.S. was also evident on a global level. Weekend RevPAR advanced 3.0% while the weekday and shoulder period RevPAR declined 1.0% and 0.9%, respectively.
While it was a flat week from an overall global perspective, nine of the 11 major countries posted positive performance for the week, with all but two also posting growth on average over the past four weeks. Japan continued to hold the top spot, followed at a distance by Indonesia, Spain and India.
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 contains “forward-looking” statements, including statements about CoStar’s beliefs or expectations regarding the future. These statements are made based on current opinions and are subjected to many risks and uncertainty that could lead to actual results differing materially from the statements. Among other factors, the following could contribute or cause such differences: The risk that future events media will not lead to an increase in future rates of occupancy. CoStar has provided additional information regarding potential factors which could lead to results differing materially from the ones anticipated in the forward looking statements. This includes, but is not limited to the filings that CoStar makes with the Securities and Exchange Commission from time to time, such as the Annual Report on Form 10K for the year ending December 31, 2023 and in Forms 10Q for the quarters ended March 31, 2020, June 30, 2030, and September 30 2023. CoStar’s forward-looking statement are based solely on information that was available at the time of this publication. CoStar is not obligated to update any forward-looking statement, whether in response to new information, future events, or otherwise.
