Key findings:
- GOP% rose 3.6 points year-over-year to 44.9% in H1; 47.2% in Q2
- Luxury posted the strongest gains: ADR up 10.1%, RevPAR up 15.9%, GOP% up 4 points
- Economy was the only chain scale with declining H1 RevPAR, down 2.7%, despite the strongest occupancy growth in the dataset
- June delivered the strongest rate environment of the half: ADR up 11.4%, RevPAR up 13.1%
“The H1 data shows a market that’s getting stronger in aggregate, but the divide between the top and bottom of the chain scale continues,” said Sarah McCay Tams, head, research and editorial, Actabl. “The industry’s bifurcation is often described in terms of affluent consumers continuing to spend while lower-income households face greater financial pressures. H1 performance reinforces that, but the distinction isn’t simply about who travels. Economy occupancy was up 4.6 points, but ADR fell 9.3%. Hotel leaders should think about this bifurcation less as a demand divide and more as a pricing-power divide. The second half of the year will test how durable that pricing power is and how much operational discipline can do to protect the margins that remain.”
At the top end of the market, luxury hotels didn’t have to choose between filling rooms and raising rates. They did both with ADR rising 10.1% and occupancy gaining 3.4 points year over year, pushing RevPAR up 15.9% to $225.27. GOP% improved 4.0 points, from 34.6% to 38.6%.
Economy tells the opposite story. Occupancy increased 4.6 points, the strongest gain across any chain scale, but ADR fell 9.3%, leaving RevPAR down 2.7%. It was the only chain scale to post a RevPAR decline in H1. GOP% was essentially flat, down just 0.1 points. Economy attracted more guests, but at rates that couldn’t convert that volume into comparable revenue or profit growth.
Between those extremes, the middle market found more balanced footing. Midscale, upper-midscale, upscale and upper-upscale all posted positive RevPAR growth. Upper-upscale delivered a strong margin result with GOP% improving 2.8 points despite modest topline growth.
Q2 strengthened the H1 story across the board. All Hotels ADR increased 8.0%, and RevPAR rose 9.4%, with GOP% improving 3.3 points to 47.2%. Economy which had seen RevPAR fall 8.9% in Q1 as ADR declined sharply, returned to growth in Q2 at +3.3%; a sign the segment is moving in a healthier direction, even as H1 finished below 2025.
June delivered the strongest rate environment of the half, coinciding with the start of the FIFA World Cup. All hotels ADR increased 11.4%, and RevPAR rose 13.1%. Luxury captured the most, with June ADR up 20.6% and RevPAR up approximately 24%. Economy saw occupancy rise 4.5 points while ADR held essentially flat, highlighting the very different commercial outcomes despite similar market conditions.
Tags: Sarah McCay Tams, Actabl HotelData.com
