STR: More global markets above pre-pandemic occupancy levels

STR’s latest global bubble chart update shows strong top-line performance indicators for much of the world during the four weeks ending Aug. 20. Among the developments since its previous update, countries around the Mediterranean region led in overall performance, while more markets overall eclipsed pre-pandemic levels of occupancy.

Among the 48 countries with room supply of more than 50,000 hotel rooms, 11 reported occupancy above 75%, which was four more than the previous 28-day period. Greece, Italy, France and Croatia remained in the top five performing countries on a RevPAR basis, with Israel recently added to the mix. Each of those countries’ connection to the Mediterranean Sea reflects strong demand for summer holiday destinations.

Two-thirds of selected countries (33 of 48) grew RevPAR from the comparable period in 2019. Six countries recorded gains in both occupancy and ADR, which was three higher than the previous update. Only seven countries remained below 80% of 2019 occupancy levels compared with 11 countries previously. However, the recurring story of Asia-Pacific countries lagging those in other regions continued with COVID restrictions still being implemented.

Nearly one-third of markets grew both occupancy and ADR from 2019 comparisons. That was 40 more markets than the previous update (276 of 900), which reflects a stronger and more balanced recovery across the world.

Event-driven demand was apparent in Birmingham, U.K., during the Commonwealth Games as occupancy and ADR grew 9% and 70%, respectively, from 2019 levels.

In China, one market did continue to stand out as Hainan continued its strong summer in the top five RevPAR growth markets. The story could be different in STR’s next update due to a recent COVID lockdown.