The race takes off in the next big arenas of competition
The race takes off in the next big arenas of competition
https://www.mckinsey.com/mgi/our-research/the-race-takes-off-in-the-next-big-arenas-of-competition
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In the arenas, investment cycles are accelerating, value pools are shifting, and a new type of competitor is scaling across industries.
At a glance
- The McKinsey Global Institute previously identified 18 future arenas of competition—from AI services to space—that are increasingly writing the global growth story. Indeed, over the past three years, these 18 industries have grown roughly four times as fast as other industries in market cap and ten times as fast in revenue. Arenas are, by definition, the fastest-growing and most dynamic industries. As their scale and reach into the broader economy expand, it is fair to say that we are all in these arenas now.
- Since 2022, an “AI foundation” set of industries—semiconductors, cloud services, and AI software—has added $500 billion in revenues and $11 trillion in market cap. Infrastructure demand and investment have escalated rapidly in anticipation of AI deployment orders of magnitude larger than today. Companies that design and deploy computing power at scale have so far accrued most of the increase in market value and profit.
- Meanwhile, growth continues to surge in digital industries, while many physical arenas are poised to take off. Digital industries, such as e-commerce and digital advertising, are capturing a growing share of the attention economy, especially in emerging markets, even as chatbots reduce open-web traffic and agentic commerce creates new competitive fronts. Other arenas continue to escalate at varying paces, from robotaxis rolling out in dozens more cities worldwide to obesity drugs that are now six out of every 100 US prescriptions.
- Nine large competitors—we coin them “omniscalers”—are spending heavily and spanning multiple arenas. The nine omniscalers collectively generated over $700 billion in operating cash flow in 2025 and invested more than $800 billion in R&D and capital expenditures that same year. Their capabilities and financial capacity compound as they compete in arena after arena, expanding to generate revenues in as many as nine arenas.
- Companies headquartered in the United States and the Greater China region account for 90 percent of the arenas’ market value today. US companies lead in 14 of the 18 arenas in market cap and ten in revenues. But China is gaining ground, especially when measured by revenue shares. The rest of the world stands by—for now.
Entering 2026, record-breaking investment in semiconductors, cloud services, and AI software and services is poised to transform how global companies create value. This fast-growing “AI foundation” for business is accelerating the growth of digital ecosystems and enabling new physical-world applications, from space and robotics to drones and other forms of “physical AI” that sense, decide, and act in the real world. At the same time, novel weight-loss therapies are reshaping pharmaceutical pipelines, electrification is advancing steadily, and geopolitics is increasingly influencing how critical industries are built up and protected—particularly through technology sovereignty and supply chain resilience policies.
All this has rapidly evolved since McKinsey Global Institute published The next big arenas of competition in 2024. We defined arenas as those industries with the highest growth rates and the most competitive dynamism, where market-share changes are the norm. With this definition, 12 arenas were identified by analyzing market data from 2005 to 2020. The original dozen included cloud services, e-commerce, biopharmaceuticals, and electric vehicles (EVs). Although these industries represented only about 10 percent of large-company revenues, they explained half the growth in market capitalization. They grew twice as fast as others, with roughly double the R&D intensity and triple the profitability.
Based on the markers of these 12 arenas over the last two decades, MGI identified 18 future arenas—industries showing early indications of the same potential to reshape the global economy over the next two decades. Some represent entirely new domains of competition, such as shared autonomous vehicles and space. Others, like semiconductors and e-commerce, reflect the ongoing evolution of earlier arenas as technology resets and investment cycles intensify. Throughout this report, we refer to all 18 as “future arenas,” likely to lead in growth and dynamism to 2040, even as this group is changing the business landscape today. Together, these 18 future arenas could generate $29 trillion to $48 trillion in revenues by 2040 (see sidebar “About the next big arenas of competition”).
In this 2026 update, we focus on the 18 future arenas to explore how competition is unfolding within them. With this focus, we see accelerating investment, shifting value pools, and a new industrial landscape emerging. Looking back now, even with just a few more years’ data, it seems our views were, if anything, conservative.
Chapter 1 presents evidence that the future arenas have far outgrown the rest of the economy since 2022 and are driving a disproportionate share of market value creation, which is why they are reshaping the technology frontier, capital flows, talent markets, and supply chains.
Chapter 2 tells the story of recent dynamics across the arenas. To see the forest for the trees, we group them into five broad clusters with similar macro-level drivers: AI foundation, digitization, electrification, hard tech, and new bio-frontiers. Here we see the record-breaking surge in investment in AI and adjacent industries, the emergence of AI’s physical constraints, and how digital businesses are being recharged with significant implications for further growth potential. The chapter continues with a look at some technological step changes in batteries, autonomous vehicles, obesity drugs, and other arena-shaping developments in the physical realms.
Chapter 3 explores how a small group of highly cash-generative companies are expanding across arenas through the compounding effects of financial resources, innovation capabilities, and bold execution. We call them “omniscalers” to draw attention to their arena-spanning scope, which positions them to reuse their capacity to scale. At the same time, focused champions continue to compete vigorously: Nvidia, the world’s most valuable company at the time of writing, plays mainly in one arena—semiconductors.
Chapter 4 tracks the global race through a regional lens. US and Chinese companies figure most prominently, followed by players based in Europe and parts of advanced Asia. Differences in market structures shape these dynamics, alongside each region’s existing strengths.
Chapter 5 concludes with a strategy perspective to help CEOs, senior executives, and policymakers act on early signs of industrial shifts that are most relevant to companies and economies. From both defensive and offensive perspectives, how can companies and countries best prepare for the next big arenas of competition?
Chapter 1
Growth takes off in future arenas
From AI, cloud services, and cybersecurity to more physical realms like space, robotics, and modular construction, the 18 arenas of the future are already economically significant—and they are pulling further ahead. Data through 2025 show that each of the 18 future arenas named in the flagship report is progressing broadly in line with the scenarios we modeled for 2040, and some even faster.
Future arenas are at the center of the global growth story
Since 2022, future arenas have expanded far faster than other industries, with market cap totals expanding four times as fast as non-arenas (29 percent per year from 2022 to 2025, compared with just 8 percent). Future arenas’ revenues climbed 11 percent per year during the same period—compared with a 1 percent growth rate in non-arenas, on average. As a result, future arenas accounted for about half of total market-cap growth and revenue growth over the past few years. As of 2025, the 18 arenas represented roughly $33 trillion in market capitalization and about $5 trillion in revenues. Capital expenditure and R&D investment also grew faster over the three years: Arenas expanded their investment spending at an annualized rate of about 14 percent, compared with 4 percent for non-arenas. By 2025, annualized investment among the arena companies exceeded $1 trillion. Arenas also earn higher returns: In our sample, future-arena companies delivered a return on invested capital (ROIC) about 1.5 times that of non-arenas.
Beyond growth, rapid market-share shifts—that is, high levels of dynamism—are defining characteristics of arenas. For 2022 to 2025, we measure revenue dynamism with a “shuffle rate” of 14 percentage points for our future arenas, compared with ten percentage points for non-arenas. The shuffle rate comparison means that future arenas had bigger market share shifts among top players than non-arenas. While this three-year window is too short for definitive conclusions about new entrants or sustained shifts in market share, the early signals point to more fluid competitive dynamics in arenas. One only needs to witness the constant leapfrogging of frontier AI models to see this.
There are three key ingredients that form a repeatable “arena creation” potion, which we continue to see across these industries. We first see a technology or business-model step change—not just one new idea but a new trajectory or platform. As examples, think of the discovery of GLP-1 therapies for obesity and reusable rocket launchers that minimize the cost of getting satellites into space.
Second, we see escalatory investment, with players spending at an ever-increasing pace to try to keep a seat at the table. This can be a race for primacy or even just survival as players rapidly develop capability on the new technology curve. The spend gets very big in absolute terms, but none of that matters much if the competitor spends more—a process that keeps going and shakes out those who cannot keep up. The escalatory-investment pattern is most evident in AI, but across arenas, qualitative advantages can result in both extraordinarily high investment and winner-take-most dynamics.
And third, we see a large or expanding addressable market, which may draw from an already large market—such as EVs building on the existing global automotive market or shared autonomous vehicles rerouting traffic from the taxi and rideshare markets. Alternatively, large and expanding markets can be created anew, as seen in AI software and services. The recipe still appears to work as future arenas combine the three arena-creation potion elements to fuel strong growth and high dynamism.
The arenas are pushing forward, some at warp speed
A composite picture of growth shows future arenas clearly overshadowing other industries. But what does a more detailed scorecard reveal? To measure progress, we built a bottom-up database, working from the company level (see sidebar “Methodology” and the compendium for more detailed arena-by-arena findings).
The overall story: The future arenas are largely tracking within the growth boundaries we expected, with some growing notably faster. “Upper bound” (in the darkest blue) indicates fast recent growth and active reshuffling, consistent with the upper end of our 2040 prediction ranges with strong signals from the trio of ingredients. “Middle track” indicates solid momentum. “Lower bound” (in the lightest blue) indicates slower or earlier-stage progress relative to the 2040 scenarios. But note that signals of high-growth potential relative to the rest of the economy are evident in all 18 future arenas.
- Eight arenas are racing ahead at the upper bound of the trajectory. The AI foundation (AI software and services, cloud services, and semiconductors), plus digital advertising, cybersecurity, EVs, space, and shared autonomous vehicles, all show growth consistent with the assumptions behind our higher-growth scenarios.
- Five are advancing at the expected fast speed. Two of these five are in the digitization cluster of industries: e-commerce and streaming video. Adoption for both is already broad; growth now comes from a mix of an expanding addressable market, especially in developing economies, and richer monetization models. Batteries, robotics, and obesity drugs are similarly tracking our 2040 scenarios.
- Five arenas are in earlier stages of growth. They are future air mobility, video games, modular construction, non-medical biotech, and nuclear fission. With their technology advances, investment levels, and commercialization efforts still scaling, they face headwinds before they can move up the path known as the S-curve.7 Even so, we see step-change technologies, long-horizon capital commitments, and policy support emerging, all of which suggest the potential for arena-level growth and dynamism down the road.
In practice, many arenas are likely to follow S-shaped adoption curves—with lower CAGRs early in the life cycle, higher ones as adoption scales, and, eventually, moderated growth, until the next technology reset. Accordingly, scenario placement is determined not solely by observed revenue growth in 2022–25 but also by market-cap CAGR (a proxy for investor expectations) and the core arena-creation potion elements, which are technology step changes, escalatory investment, and market expansion. These are all considered alongside life-cycle stage and dynamism signals. While assessment inputs often align, sometimes they diverge. Where they do, we provide additional details to explain the rationale.
One example is space, which we assess as being at the upper bound despite revenue growth closer to the lower track. Actual CAGR for 2022 to 2025 was 8 percent, compared with 7 to 10 percent under the scenario for 2022 to 2040, but our upper bound assessment for space reflects its strong market-cap signals and growth catalysts, such as rising defense demand, as well as technology-driven declines in launch costs.
Another example is batteries, assessed as middle track even though revenue growth from 2022 to 2025 is on the lower end of the trajectory to 2040. That is because electrification demand for batteries remains strong, driven by higher demand for both electric vehicles and battery energy storage solutions. In 2025, installations of battery energy storage solutions topped 300 gigawatt-hours, up 50 percent year on year. However, batteries’ recent price declines have temporarily depressed revenues.
Obesity drugs illustrate a distinct situation: Despite its 38 percent revenue CAGR (far above the scenario for 2040 of 9 to 15 percent), with price declines of roughly 25 to 40 percent between 2022 and 2024 and intensifying competition among more than 80 companies pursuing obesity treatments in 2025, CAGR could start slowing down, thus shaping the track assessment.
Outside the arenas
Arenas remain the headline story. But a focus on net growth can hide an important nuance: In absolute terms, roughly half of the increase in market value and revenues from 2022 to 2025 comes from industries outside the arenas. Their gross gains are even larger before subtracting the declines that offset them over this period.
Across all industries, the net increase in revenues was about $3.1 trillion from 2022 to 2025. Roughly $1.4 trillion of that comes from arenas (at an 11 percent CAGR). An additional $4 trillion comes from non-arena industries that are growing (about 4.3 percent CAGR). But that growth is offset by about $2.3 trillion in declines from shrinking non-arena industries (down about 4.4 percent per year).
While our arenas are typically on the right-hand side of the curve—growing faster—they are not the only pockets of growth. Some traditional industries grow fast without displaying the dynamism and competitive characteristics that define arenas. Instead, their expansion may reflect other broad drivers, namely demand tailwinds from macro-level demand drivers (as seen in healthcare and defense); continued growth from our 12 past arenas (as seen in software and payments); and postpandemic recovery (as seen in travel and leisure and air services).
As the industrial landscape continues to evolve rapidly, other industries could reach arena status. At the same time, we could be wrong that the 18 future arenas tracked here will maintain the highest growth and dynamism in the years ahead. In the original report, we identified eight almost-emergent arenas—industries that show some ingredients of arena formation but face greater uncertainty about growth or dynamism. They are clean hydrogen, lower-carbon materials, products and services for older adults, nuclear fusion, renewables equipment and infrastructure, sustainable fuels, virtual and augmented reality, and Web3 (including decentralized finance). As technology trajectories evolve, other domains may also warrant monitoring, even if commercial impact remains uncertain today. For example, quantum technology is surging and could have significant revenues in the period to 2040 and multiple times more value added through industries like finance, pharmaceuticals, and cybersecurity. But significant hurdles and uncertainty remain.
We’re all in arenas now: These fast-moving industries matter for everyone
Collectively, the shift in value toward the 18 future arenas is staggering. Compared to 20 years ago, they are now five times more important as a share of market capitalization (from 5 to 26 percent) and revenue (from 2 to 10 percent) among the companies in our data set. The picture is even starker when we add the matured past arenas, denoted in gray on the charts. Past arenas include such industries as payments and industrial electronics, which previously qualified as arenas but didn’t make the cut because growth and dynamism show signs of stabilizing. Past and future arenas combined exceed 40 percent of all market capitalization today, up from about 12 percent in 2005.
(Follow next chapter)
IHG's Maalouf: 'Uncertainty is the only certainty' hoteliers have
CEO says Europe benefits from international inbound travel amid GDP drops
IHG Hotels & Resorts' Elie Maalouf speaks with JP Morgan's Estelle Weingrod during the 2026 International Hospitality Investment Forum EMEA. (Sean McCracken)
https://www.costar.com/article/427064574/ihgs-maalouf-uncertainty-is-the-only-certainty-hoteliers-have?
BERLIN — War in Iran was one of the top topics of discussion during the International Hospitality Investment Forum, but IHG Hotels & Resorts CEO Elie Maalouf said conflict is sadly not a new phenomenon for a global hotel brand company like his.
Speaking during one of the fireside chat sessions with top industry executives, Maalouf said disruption is par for the course when your company spans the globe.
"The top priority is the safety and security of our guests, our colleagues, properties and supporting our owners in the region," he said. "Unfortunately, we have a lot of experience with this around the world. We are always somewhere in a place of conflict or natural disasters. When you're in 100 countries, things happen. We're still operating in Ukraine and Kyiv. We've been operating in the Middle East for 65 years."
He noted hoteliers have had to be nimble in recent years.
"It seems like uncertainty is the only certainty we have every year," he said. "I'm not sure what the uncertainty will be, but there is [always] something that comes up. Last year, it was tariffs and the impact on world trade and business. That seems to have been managed, and well this year, we have this conflict in the Middle East."
One key for the hotel business is to understand situations are always changing, but that doesn't mean that things won't recover, Maalouf said.
"This is an interruption of a very strong trajectory but not a change in that trajectory," Maalouf said. "It's hard to see that when things are happening. Usually people always assume the worst during the situation. In the pandemic, the presumption was nobody will travel again. No groups or meetings. No conferences. What are we doing here, right? People are traveling again, and when war happens in the Middle East, we think it's going to be the end of times. It's sad. It's awful, the loss of life, the pain, the destruction. I'm from the region myself. I'm a Lebanese citizen, and a U.S. citizen, too. So I've seen my share of wars, but I've also seen the recovery every time."
Path to growth
Beyond the headwinds brought on by war, there are a strong confluence of factors supporting global travel, including the burgeoning middle class in China and India and an increasing appetite for experiences and events, Maalouf said.
He added hotels are the long-term linchpin for those seeking life-changing travel experiences.
Travel "is the ultimate live experience," he said. "It brings it all together, our culture, music, restaurants, bar life, everything important in life happens in a hotel at some point. Business, personal, professional, ceremonies — everything important in life happens in hotels."
The decoupling of GDP growth and travel spend, which has been viewed as largely a negative trend in the U.S., actually bodes well in some regions like Europe, which have seen softer economic growth but increasing international inbound travel.
"I think for quite some time, Europe can grow travel as a destination while GDP growth remains lower," he said. "We're prepared for that."
Another thing IHG Hotels & Resorts is prepared for is a shift to spending on luxury and lifestyle travel and experiences, which Maalouf said now accounts for 22% of IHG's pipeline.
He pointed to increasing longevity as a driver of high-end travel, as more older consumers look to enjoy their retirement in comfort and share travel with their families.
"Instead of buying something for the kids or the grandkids, what they do is buy a holiday. They buy a vacation," he said.
Demand ‘madness’ boosts US hotels in mid-March
San Diego, St. Louis shine as host markets of NCAA men’s tournament
The start of the NCAA men's basketball tournament spurred hotel demand in markets that hosted the opening rounds, including San Diego. The University of Kansas Jayhawks defeated California Baptist University Lancers on March 20 at Viejas Arena at San Diego State University in San Diego, California. (Getty Images)
https://www.costar.com/article/1597777886/demand-madness-boosts-us-hotels-in-mid-march?
March continued strong as U.S. hotel room demand increased for a seventh consecutive week and at the highest level since mid-February.
During the week of March 15-21, demand rose 3.3% year over year, driving a third straight week of growth across all three key performance metrics. Revenue per available room (RevPAR) increased 4.9%, supported by a 2.2% gain in average daily rate (ADR) and a 1.8-percentage‑point increase in occupancy.
Weekly U.S. hotel occupancy reached 67.7%, extending a nine‑week streak of week‑over‑week improvement. Notably, occupancy levels did not reach this point until mid‑June in 2025 and late May in 2024, underscoring how early‑year demand is tracking ahead of recent norms and reinforcing the U.S. hotel industry’s momentum entering the heart of the spring-break travel.
Over the past seven weeks, the U.S. hotel industry has sold 4.1 million more rooms than it did in the same period a year ago, despite a decline in group demand for luxury and upper-upscale hotels. Weekday group demand from Sunday to Thursday for these hotels was down 1.8% this week. However, stronger transient demand more than offset the decline in group travel. Over 70% U.S. markets were up in overall demand this week, and total weekday demand increased by 2.1%.
Over the past seven weeks, 66% of U.S. hotel markets on average have seen demand gains versus 50% a year ago during the same seven-week period. Twelve markets, led by Las Vegas, accounted for 49% of the demand increase over the past seven weeks. Besides Las Vegas, other high-performing markets included Nashville, San Diego, and San Francisco. The latter two markets combined contributed more than 12% of the demand gains over the past seven weeks. In total, 35 markets have reported demand gains in each of the seven weeks versus 15 a year ago. Additionally, 33 markets have seen increased hotel demand in at least 11 of the past 12 weeks versus just 12 last year.
Each class of hotels increased in both RevPAR and rooms sold this week for just the second time this year. Even with the decline in group demand, luxury hotels continued to have the largest RevPAR growth (+7.7%), driven by the largest ADR increase of any class (+5.6%). Unlike recent weeks, the economy and midscale hotels saw growth on par with the rest of the hotel industry. Room demand in economy hotels increased 1.6% or 76,000 additional rooms sold, making this the largest weekly demand increase since 2024. Prior to this week, economy hotels had averaged a weekly decline of 130,000 rooms sold a week since January 2025. Midscale hotels also saw their highest demand increase since 2014, increasing by over 145,000 rooms sold this week.
Many of the top individual market increases were driven by sporting events. The opening rounds of the NCAA March Madness tournament began on Thursday, March 19, and ran through Sunday in eight markets across the country. These markets combined for an occupancy of 83.6% for Friday and Saturday, and a weekend RevPAR increase of 17.9%. St. Louis and San Diego saw the largest increases in Top 25 host markets, both of which saw a weekly RevPAR increase of 29%. San Diego’s demand growth (+18.1%) was the largest of the two markets, due to conferences in the days leading up to the tournament. Of the smaller March Madness host markets, Buffalo, New York, and Oklahoma City saw the largest year‑over‑year increases.
Outside of basketball, Miami led all markets with a 90% occupancy thanks to the World Baseball Classic’s final rounds from Sunday to Tuesday. The tournament final between the United States and Venezuela helped drive Tuesday occupancy above 92%. For the week, Miami RevPAR was up 17.3%, and ADR increased by 12.5%.
Denver rounded out the week with the strongest RevPAR growth among Top 25 markets despite not hosting a major sporting event. The APS Global Physics Summit drove a 37% increase in group demand, highlighting how conference activity continues to provide meaningful weekday lift in select markets. With demand growth broadening across hotel classes and event‑driven travel accelerating mid‑March performance, the U.S. hotel industry enters the final weeks of the month with solid momentum and improving depth across both leisure and business‑oriented segments.
Global hotels feel the impact of the Iran war
Global RevPAR growth, on a same-store and constant USD basis excluding the U.S., stalled (+0.5%) as the weight of the Iranian war resulted in a 30.1% decrease in the Gulf Cooperation Council (GCC) countries. Excluding the GCC, global RevPAR was up 3.5%, like what had been seen in the previous three weeks. Mexico (12.8%) and India (11.9%) also saw RevPAR fall in the week.
Over the past seven weeks, the U.S. hotel industry has sold 4.1 million more rooms than it did in the same period a year ago, despite a decline in group demand for luxury and upper-upscale hotels. Weekday group demand from Sunday to Thursday for these hotels was down 1.8% this week. However, stronger transient demand more than offset the decline in group travel. Over 70% U.S. markets were up in overall demand this week, and total weekday demand increased by 2.1%.
Over the past seven weeks, 66% of U.S. hotel markets on average have seen demand gains versus 50% a year ago during the same seven-week period. Twelve markets, led by Las Vegas, accounted for 49% of the demand increase over the past seven weeks. Besides Las Vegas, other high-performing markets included Nashville, San Diego, and San Francisco. The latter two markets combined contributed more than 12% of the demand gains over the past seven weeks. In total, 35 markets have reported demand gains in each of the seven weeks versus 15 a year ago. Additionally, 33 markets have seen increased hotel demand in at least 11 of the past 12 weeks versus just 12 last year.
Each class of hotels increased in both RevPAR and rooms sold this week for just the second time this year. Even with the decline in group demand, luxury hotels continued to have the largest RevPAR growth (+7.7%), driven by the largest ADR increase of any class (+5.6%). Unlike recent weeks, the economy and midscale hotels saw growth on par with the rest of the hotel industry. Room demand in economy hotels increased 1.6% or 76,000 additional rooms sold, making this the largest weekly demand increase since 2024. Prior to this week, economy hotels had averaged a weekly decline of 130,000 rooms sold a week since January 2025. Midscale hotels also saw their highest demand increase since 2014, increasing by over 145,000 rooms sold this week.
Many of the top individual market increases were driven by sporting events. The opening rounds of the NCAA March Madness tournament began on Thursday, March 19, and ran through Sunday in eight markets across the country. These markets combined for an occupancy of 83.6% for Friday and Saturday, and a weekend RevPAR increase of 17.9%. St. Louis and San Diego saw the largest increases in Top 25 host markets, both of which saw a weekly RevPAR increase of 29%. San Diego’s demand growth (+18.1%) was the largest of the two markets, due to conferences in the days leading up to the tournament. Of the smaller March Madness host markets, Buffalo, New York, and Oklahoma City saw the largest year‑over‑year increases.
Outside of basketball, Miami led all markets with a 90% occupancy thanks to the World Baseball Classic’s final rounds from Sunday to Tuesday. The tournament final between the United States and Venezuela helped drive Tuesday occupancy above 92%. For the week, Miami RevPAR was up 17.3%, and ADR increased by 12.5%.
Denver rounded out the week with the strongest RevPAR growth among Top 25 markets despite not hosting a major sporting event. The APS Global Physics Summit drove a 37% increase in group demand, highlighting how conference activity continues to provide meaningful weekday lift in select markets. With demand growth broadening across hotel classes and event‑driven travel accelerating mid‑March performance, the U.S. hotel industry enters the final weeks of the month with solid momentum and improving depth across both leisure and business‑oriented segments.
Global hotels feel impact of Iran war
Global RevPAR growth, on a same-store and constant USD basis excluding the U.S., stalled (+0.5%) as the weight of the Iranian war resulted in a 30.1% decrease in the Gulf Cooperation Council (GCC) countries. Excluding the GCC, global RevPAR was up 3.5%, like what had been seen in the previous three weeks. Mexico (12.8%) and India (11.9%) also saw RevPAR fall in the week.
Pacific Central, the location of the cartel violence a few weeks ago, and Mexican Caribbean markets of Mexico saw the largest decrease – 37.2% and 19.6%, respectively – but even without those markets, RevPAR in Mexico was still down (-3.4%) as nearly all markets saw a decline. The only notable exception was Cancun, where occupancy advanced to 81.4% with flat ADR, resulting in a 2.4% RevPAR gain.
More than half of all markets in India saw RevPAR decrease, mostly on falling occupancy. RevPAR in Bengaluru and Mumbai, the two largest markets, was down 27% and 12.6%, respectively.
Canada, the Caribbean, Japan, and Spain saw RevPAR advance by more than 10%. France and the U.K. also saw solid growth, with RevPAR flat in Australia and China. The former was held back by Brisbane and Melbourne, which both saw a double-digit fall.
Isaac Collazo is the senior director of analytics at STR. Cole Martin is an analytics and insights specialist at STR.
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