Global

Market Forecasts, produced by STR and Tourism Economics, provide you with the insights needed to anticipate future performance. 

The global hotel industry is firmly positioned in an era of normalized growth levels. That means to achieve greater profits, hotel owners and operators need to explore every possible revenue stream while also working to manage expenses. 

The second-most watched football tournament in the world, the UEFA European Football Championship, which is held every four years, returned to the global stage from 14 June through 14 July. With the exception of Euro 2020, which was played across a host of countries from England to Azerbaijan, the sporting event is normally played in its entirety across one or two host nations.

Set on a global stage, Formula 1 spans across multiple continents, with 12 of the 24 races so far this year having taken place on F1’s biggest ever calendar. We take a look at how host market hotels performed during this year’s races and what occupancy on the books looks like for races set for later this year.

If you work in the hotel business, acronyms are part of the job. Among the many shorthand terms we use, two are particularly important for measuring performance. Their names might strike a similar chord, but delving into these respective metrics reveals crucial distinctions.

Labor is typically one of the highest expenditures for hotels on average. The issue of acquiring labor became more complex during the COVID-19 pandemic, with many workers opting for employment in other sectors or not returning to the hospitality workforce after a period of layoffs and furloughs.

Analysis by Eddie Yeung

Note: All financial figures presented in US$.

STR's global "bubble chart" update for the four weeks ending 15 June 2024 shows 65% of markets with year-over-year growth in revenue per available room (RevPAR). The percentage has remained between 60% and 77% with much of the world firmly positioned in a normalization period.

What is GOPPAR?

One of the hospitality industry’s key bottom-line metrics, gross operating profit per available room measures the relationship between hotel revenues and expenses. In general, the better you understand GOPPAR, the better you will be at turning revenue into profit. That is why it is important to benchmark your GOPPAR, along with the other key P&L metrics, on a consistent basis. 

Hotel owners and operators are best positioned for success when they measure their business from every angle. That is why no benchmarking experience can be considered comprehensive without frequent insight into future booking levels in the marketplace.  

What is Average Daily Rate (ADR)? 

Average daily rate (ADR), one of the three key hotel performance indicators (along with occupancy and