Independent Insights from STR and CoStar
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Given recent trends in market performance, opportunities to grow profit have become less apparent. Unlike previous years, the balance of short-term performance growth reflects moderating increases in room rates amid growing price sensitivity among travelers. Therefore, hotel owners and operators must explore every possible revenue stream for their properties while also carefully managing expenses.
Excitingly, the recent announcement of an expanded industry solution from CoStar and STR is unlocking a new level of opportunity across the commercial real estate market. This new standard of success, CoStar + Benchmark, equips you with the tools to measure and improve your performance, generate new corporate leads and expand your portfolio.
STR works with nearly 2,300 hotels in Germany, more than 3,000 hotels in the DACH region, and 85,000 hotels around the world—more than any other data provider. Every owner, operator or brand partnering with us is positioned to gain a competitive advantage.
Previewed briefly below, our 2024 report for the Independent Hotel Show will be issued to attendees following the event with insights spanning top-line performance, guest segmentation, forward bookings and forecasting.
Report preview
The DACH region has reported 5.0% or higher performance growth in all but two months this year (March and May). Gains earlier in the year leaned further toward occupancy with easier comparable levels to surpass from 2023, whereas growth during the summer months was highlighted by advancement in room rates. When narrowing the focus to Germany, growth patterns look similar with the most noteworthy gains coming during the summer months and the UEFA Euro Championship. Growth then moderated at the end of the third quarter. Percentages increases have come in at similar levels for independent and branded properties.
Looking ahead, STR and forecast partner, Tourism Economics, adjusted projections to account for rising price sensitivity in European travel. The success of the Euros significantly boosted Germany’s 2024 RevPAR outlook; however, limited improvements outside the tournament period and higher comparables have led to a slight downgrade in 2025 performance expectations.
Reflecting the heightened price sensitivity, ADR declines are projected for a larger number of European markets in 2025. German markets are notably affected, impacted by both the post-UEFA period and offsetting trade fair dynamics.
