Olympic 2021 hotel gains slip

LONDON 22 April 2020: The Summer Olympics’ performance gains for Tokyo hotels are projected to be lower now a one-year delay has been announced for 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  STR’s managing director Robin Rossmann.

“Lower absolute demand levels would be linked with traveller 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.

*RevPar: Revenue per available room;
ADR: Average daily rate.

(Source: STR)