Urban hotel performance accelerating

Global urban market performance is strengthening, propelled by a surge in international travel and the return of business and group demand

While global hotel revenue per available room (RevPAR) remains elevated, surpassing 2019 levels by 11.7% through the first eleven months of 2023, performance has begun to normalize as some leisure travel contracts. Stabilization has weighed heaviest in resort markets, predominantly in the Americas and EMEA, with Asia Pacific continuing to accelerate as intraregional travel grows following border reopening.

Key takeaways

• While demand has begun to normalize across some resort-heavy markets, urban performance has skyrocketed, with many cities in Western Europe and the Middle East producing historically high RevPAR;
• Markets like London, New York and Tokyo are expected to lead global RevPAR performance in 2024 as travelers continue to return to cities;
• Americas hotel performance also remains above 2019 levels, but RevPAR has begun to stabilize amid declining consumer travel spending. This has primarily impacted resort markets which rely heavily on leisure travel.

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