More Hotels Around the World Report an Average Rate of $ 1,000-plus
US , Italy and France show strongest growth in properties with a four-digit average rate BY JAN D . FREITAG
STRONG LEISURE DEMAND from high-end travelers has supported robust pricing increases at high-end hotels . This translates into more hotels that can regularly charge well over $ 1,000 per room per night and reported an average daily rate , or ADR , of more than $ 1,000 for the first half of 2024 . In the same time period in 2019 , around 150 hotels globally reported an ADR of $ 1,000 or higher . Last year , that number jumped to 460 hotels .
Hotels with $ 1,000 Average Rates Used to be Rare . Not Anymore .
2019 2024
and more than doubled in the Asia Pacific and the Middle East and Africa region . This speaks to the proliferation of higher-end brands and the global nature of high-end leisure demand .
The hotels in this sample report their monthly and weekly revenues to STR , a CoStar Group company . Smaller , ultra-luxury hotels , such as lodges in the African savannah or boutique bed-and-breakfasts in rural Europe , may not participate in the STR reporting , so the number of hotels reported here is likely undercounting the total .
Five of the 10 countries that grew their stable of $ 1,000 ADR hotels the fastest since 2019 are in Europe . Not
HOTEL COUNT
European Countries Show Strong Increase in Hotels That Report a $ 1,000 + ADR
AMERICAS |
ASIA PACIFIC |
EUROPE |
MIDDLE EAST |
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AND AFRICA |
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HOTEL COUNT |
2019
2024
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Source : CoStar , August 2024 Data shows June year-to-date counts |
WORLD REGION |
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The ADR is an average for all rooms sold and implies that hoteliers can command even higher rates on certain nights and for certain room types . Traditionally , this was true for suites and connected rooms . Anecdotally , hotel operators have reported that in 2020 , many of their guests felt unable or unwilling to travel and that in the following years , they wanted to make up for lost time . In addition , the strong desire to be with loved ones and family members gave rise to multi-generational trips , requiring more and larger accommodations . This allowed operators to yield up the more desirable room types such as suites with multiple bedrooms .
The increase in hotels charging four-digit ADRs is a global phenomenon . Since 2019 , the number of hotels in that price range has tripled in the Americas and Europe
UNITED STATES
Source : CoStar , August 2024 Data shows June year-to-date counts
ITALY |
FRANCE
MALDIVES
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SWITZ- |
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ERLAND |
COUNTRY
MEXICO UNITED KINGDOM
JAPAN SPAIN THAILAND
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