As one of the leading global travel and hospitality companies in the world, STR is always keeping a pulse on the industry. Following their recent updates for May of 2023, STR has released an insightful “bubble chart” that provides a real-time snapshot of the industry’s performance.
The chart shows that 85% of markets have seen growth in revenue per available room (RevPAR) compared to 2019. This figure is particularly impressive when taking into account the timeline associated with the pandemic. This data is especially encouraging when one considers that half of the markets have surpassed their 2019 comparables; a feat that could have been viewed as nearly impossible as recently as a year ago.
The noteworthy takeaway from these numbers is that occupancy growth seems to be playing a larger role in driving RevPAR growth. As opposed to the renditions of this chart seen earlier in 2020, which indicated that RevPAR growth was driven mainly by an increase in ADR, the current data reflects a more balanced recovery.
It appears that the swift progress made in the past six months has established a solid foundation for future success. And while the journey has not been an easy one for the hospitality industry, the resilience displayed by operators has set the stage for a more sustainable recovery.
Though the recovery is far from complete, the results of this update offer an optimistic outlook for the hotel industry. With markets continuing to experience growth in both occupancy and RevPAR, the industry is positioned for tremendous success throughout the rest of 2023 and beyond.