The increases in global hotel rates seem to have “plateaued” across most regions, according to analysis of the latest industry figures.

Data from hotel industry specialist STR for October shows a “slight moderation” in hotel demand following a strong September for the sector.

Investment bank Jefferies, which analysed the STR data, said that average daily rate (ADR) was up by 5.2 per cent globally last month compared with October 2022, with occupancy picking up by 3.6 percentage points over the same period. In September, the worldwide year-on-year increase in ADR had been 6.6 per cent.

“Data for October shows a slight moderation for hotel demand after the strong September,” said Jefferies. “This was driven by softer occupancy in the US and Asia, while pricing in most regions appears to have plateaued. 

“Within Europe, France and Spain accelerated driven by strong pricing, however Germany saw revpar (revenue per available room) decline on price weakness.”

ADR in Europe rose by 8.8 per cent year-on-year in October as occupancy crept up by just 0.6 points compared to the same month in 2022. This increase in European prices was slightly lower than the 10.5 per cent rise seen in September. In comparison to October 2019, rates were up by nearly 37 per cent last month.