All financial figures in U.S. dollar constant currency.
Highlights
- Strong weekend offset by slower weekdays
- Sluggish Top 25 Market performance balanced by all other markets
- Group demand impacted by Juneteenth and July 4th calendar shift
- Global RevPAR unchanged
Leisure demand alive and well while business retreats
Healthy weekend performance in the last full week of June was offset by declines across weekdays, resulting in a flat week for U.S. hotels. Revenue per available room (RevPAR) was unchanged (-0.1%), the result of no movement in average daily rate (ADR), at 0.0% or occupancy, -0.1 percentage points (ppts).
There was movement in day-of-week performance with weekend (Friday & Saturday) RevPAR advancing 3.2%, while weekdays (Monday – Wednesday) retreated 2.2%. Shoulder days were also down slightly (-0.8%). Without business travel at pre-pandemic levels, daily and weekly demand will fluctuate up and down.
Chain scale bifurcation continues at a much more muted level this week, with Luxury posting the greatest RevPAR gain (+1.7%), while Economy saw the steepest decline (-1.8%). Hotels across all chain scales followed the day-of-week patterns, with the weekend producing the most positive performance for all chain scales outside of Economy. Weekdays saw declining RevPAR across all chain scales. All chain scales except Luxury posted a RevPAR drop during the shoulder period.
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 includes “forward-looking statements” including, without limitation, statements regarding CoStar’s expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that future media events will not sustain an increase in future occupancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
