Europe continues its strong summer, while Latin America picks up the recovery pace

STR’s latest global bubble chart update shows strong top-line performance indicators for much of the world during the four weeks ending 23 July 2022. Among the headlines, Europe continues to lead in overall performance outside of the U.S.; Latin America is posting strong recovery to 2019 benchmarks; and Chinese markets are showing a wide variance in recovery pace.

Among 48 countries with room supply of more than 50,000 hotel rooms, seven posted occupancy above 75%. Europe continued to stand out during the summer holiday season with Croatia joining Greece, Italy, France, and Switzerland as the top five countries on a revenue-per-available-room (RevPAR) basis. Also of note, China moved up six spots from its previous lowest RevPAR position in our last update, but there are some nuances to that improvement as noted in the market section of this article

Two-thirds of selected countries (32 of 48) grew RevPAR from the comparable period in 2019—that was eight higher than the previous update. Despite more countries recording growth in RevPAR versus 2019, only three countries managed to gain in occupancy, which shows that RevPAR continues to be driven by average daily rate (ADR).

On regional-level, Latin America continues to demonstrate strong RevPAR recovery as Brazil joined Colombia and Mexico in the top five for growth against 2019. Asia Pacific markets, however, still lag due to lingering COVID restrictions.

In China, the story has been different depending on market. On one hand, demand for summer holiday destinations was strong as Hainan and Sanya both recorded double-digit occupancy and ADR growth versus 2019 comparables. In contrast, large cities such as Shanghai and Beijing still lag far behind 2019 indicators.

It is notable that each of the top five RevPAR growth markets are beach destinations with Brazil Northeast recently setting the fastest pace in ADR growth (greater than 100%).

For more information, be sure to check out our weekly updates in STR’s Market Recovery Monitor.

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