Global hotel prices have continued to climb this year led by high rates in Europe, according to the latest data from hotel analyst STR.
Worldwide hotel average daily rates (ADR) rose by 6,3% in July over the same month last year, with the prices of European hotels seeing a 13,4% year-on-year increase.
France has experienced a dramatic increase in ADR. The report found that during July, its hotel ADR had increased by 87% over pre-pandemic levels (pre 2020) and was 36% higher than July 2022 ADR.
Overall, July ADR for hotels in Europe was 47% higher than July 2019, including rises of 51% in Italy, 31% in the UK, 30% in Spain and 18% in Germany.
Jefferies, an investment firm which analysed the report, noted that Europe’s hotel sector, despite being the most recovered region post-pandemic, has been experiencing low hotel occupancy - July 2023 occupancy was 3,9 percentage points lower than in July 2019 and up by only 0,7 percentage points over July 2022 occupancy.
Asia Pacific saw the strongest year-on-year growth in terms of revenue per available room (REVPAR), which was up by 36% in July 2023.
The Americas are seeing the least growth compared with 2022 as revenue was up by only 1% over July 2022.
