STR: Tokyo’s Olympic hotel gains forecasted to lessen in 2021
The Summer Olympics' performance gains for Tokyo hotels are projected to be lower after the one-year delay in the event, according to the latest forecast from STR and Tourism Economics.
"We are projecting less overall demand when compared with our initial forecast for 2020, and while double-digit RevPAR growth is expected, it will come from a much lower base," said Robin Rossmann, STR's managing director. "Lower absolute demand levels would be linked with traveler perception based on the timeline of the COVID-19 pandemic, as well as financial challenges of a potential global recession. The still high level of demand combined with ADR growth should drive RevPAR upward, similar to the growth percentage we saw during last year's Rugby World Cup in the market."
Tokyo is expected to see double-digit increases in RevPAR in both July 2021 (+22.1% to JPY16,968) and August 2021 (+27.2% to JPY17,995). While growth levels are similar to the previous forecast, absolute levels will be much lower. Additionally, as a result of the event date change, the same months in 2020 are forecasted for double-digit RevPAR declines.
STR continues to monitor the COVID-19 impact on global hotel industry performance. More analysis, including upcoming and recorded webinars for Japan and other regions, can be found here.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.