Highlights

• Normal demand for Memorial Day weekend
• Top 25 Markets lifted RevPAR at the start of the week
• Luxury hotels continue to outperform the rest of the industry
• Global RevPAR strengthened

Memorial Day weekend shows the resolve of travelers

With the unofficial start to summer, TSA screening volume on Friday, 23 May was the third highest for any day in history. One day earlier, Thursday, was the fifth highest.

For the week, U.S. hotels produced steady RevPAR growth of 1.1% as average daily rate (ADR) advanced 1.5% and occupancy decreased 0.3 percentage points (ppts). The Friday and Saturday ahead of Memorial Day produced normal demand levels for the holiday weekend (+18K year over year), reflecting a steadfast consumer with an appetite for travel.

• The number of rooms sold for the Friday and Saturday of Memorial Day weekend was the third highest on record and less than 1% behind 2022 and 2019.
• Occupancy came in at 76.4%, just 0.4 ppts behind last year and 0.1 ppts behind 2023.
• ADR growth was also similar to the last two Memorial Day weekend (+0.1% this year, +0.2% last year and +0.1% in 2023).

— Source: STR — Source: STR — Source: STR

The start of the week was lifted by the Top 25 Markets with RevPAR on Monday through Thursday averaging +3.0%, driven entirely by ADR. Several T25 markets hosted large conferences at the beginning of the week, led by San Francisco with RevPAR advancing 24.3%. 

The weekend saw the greatest gains in cities outside the T25.

— Source: STR — Source: STR

Luxury on top again

Luxury hotels dominated performance across the chains scales with RevPAR rising 6.8%, driven primarily by ADR. Upper Upscale and Upscale followed at more subdued levels, just under 2.0%. Upper Midscale posted flat RevPAR and Economy declined 2.5%.

Global performance remained healthy

Global RevPAR, excluding the U.S., increased 7.4% with Japan leading the charge followed by strong performance in Germany with triple-digit RevPAR gains in Dusseldorf and Cologne. France and Mexico also saw healthy gains.

— Source: STR

Looking ahead

A full summary of Memorial Day weekend will be available in next week’s data, however, the respectable performance on Friday and Saturday as well as year-over-year growth in TSA numbers this past week (+0.5%) points to a good result.

Looking further into June, advance bookings in the U.S. are up from last year in aggregate, while July and August are seeing some softness—likely due to shorter booking windows.

The start of summer break is slightly later for students this year, which could push back some leisure travel.

Outside the U.S., performance should remain up as summer holidays commence across much of the world.

— Source: STR

Updated Forecasts

The updated U.S. hotel forecast from CoStar and Tourism Economics will be released at NYU IHIF on Monday, 2 June. Global market forecast reports will be available by Tuesday, 3 June.

*Analysis by Isaac Collazo, Chris Klauda.

* All financial figures in U.S. dollar constant currency.

About CoStar Group, Inc.

CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with thirteen million average monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

This news release includes “forward-looking statements” including, without limitation, statements regarding CoStar’s expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that future media events will not sustain an increase in future occupancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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