Summary
This technical report presents the short-term market forecast assumptions for STR's 31 European and 16 Asia Pacific forecast markets for the year 2025. It outlines projected revenue per available room (RevPAR) growth rates, which are 1.7% for Europe and 3.0% for Asia Pacific. The report details the factors influencing these forecasts, including occupancy growth expectations, average daily rate (ADR) trends, and external economic pressures. In Europe, demand growth has slowed, with 21 of 31 markets experiencing reduced occupancy growth expectations, while 18 markets anticipate ADR increases. The U.K. is highlighted as particularly vulnerable, facing potential ADR declines due to various economic factors. In Asia Pacific, the report notes that rate growth is more at risk than occupancy growth, with specific markets like Mainland China facing challenges. The report also discusses the impact of international inbound travel and supply growth on RevPAR, emphasizing the need for ongoing adjustments to forecasts as new data becomes available.
