Chart of the Day: Hotel market RevPAR dipped slightly by 1.1%

Whilst market occupancy fared better, reaching 85.6%.

This chart from CBRE shows that the overall market occupancy performed better, rising one percentage point to 85.6% for the first four months of the year over the same period last year.

CBRE said this was underpinned by the economy segment as occupancy for those hotels increased 4.9 ppt to 82.0% the period.

The luxury and mid-tier occupancy rates contracted minimally, by less than one percentage point

each, whereas occupancy in the upscale segment grew 2.5 ppt to 88.3%. The growth in upscale occupancy could be a result of operators’ pricing strategy as they reduced rates.

In terms of RevPAR, luxury and economy segments increased 4.4% and 3.6% to $393.40 and $80.74 for YTD April 2017.

Meanwhile, the RevPAR for midtier hotels suffered the most with a contraction of 4.3% to $141.93, due to the lower rates and a drop in occupancy.

Supported by strong occupancy growth, RevPAR for the upscale segment contracted minimally by 1.8% to $222.39. Overall, market-wide, RevPAR decreased by 1.1% to $199.20.