Overview of Hotel Revenue Growth#
Morgan Stanley’s Global Hotel Weekly RevPAR (Revenue per Available Room) tracker indicates a notable increase in hotel revenues for the week ending April 18. The US saw a 14.6% rise in RevPAR compared to the same week last year, a significant jump from the previous week’s modest 0.4% increase.
Factors Influencing US Performance#
This surge in the US hotel sector can be attributed to easier year-over-year comparisons, as Easter occurred later in the previous year, which had a negative impact on business travel. Over a four-week rolling period, US RevPAR averaged 4.5%, improving from 3.5% in the first quarter of the year.
European and UK Hotel Revenue Trends#
In Europe, RevPAR increased by 6.2% year-over-year during the same week, a recovery from a sharp decline of 19.2% the week before. However, on a four-week rolling basis, European RevPAR still showed a decline of 3.7%, contrasting with a 2.0% growth in the first quarter.
In the UK, RevPAR rose by 6.0% year-over-year, bouncing back from a previous decline of 12.3%. Over four weeks, UK RevPAR fell by 2.2%, compared to a 1.4% growth in the first quarter. Notably, London’s RevPAR increased by 2.1%, while regional areas experienced a more substantial rise of 7.2%.
Performance in Asia#
In Asia, China’s RevPAR experienced a slight decline of 0.5% year-over-year, down from a growth of 4.3% the prior week. On a four-week rolling basis, China’s RevPAR was at 4.1%, compared to 5.0% in the first quarter. Conversely, Japan reported a robust growth of 17.0% year-over-year, although this was a decrease from the impressive 39.1% growth observed the previous week. Japan's four-week rolling RevPAR increased by 21.5%.