What Hotel Prices Tell Us About Economic Growth: A 13-Year Global Perspective [Breakout Nations]
- Vijay Kumar
- Nov 3, 2024
- 3 min read
Updated: Nov 10, 2024
In his book “Breakout Nations,” Ruchir Sharma made a fascinating observation: when a developing country’s hotel prices rival those of developed nations, it often signals trouble ahead for economic growth.
Here is the link to my Medium Article on this topic.
Here is original data on Ritz-Carlton Index as the Author Ruchir Sharma call it.
Original Data as published in the book "Breakout Nations"
Country | City (Name of alternate property if applicable) | Rates in USD ($) [August 2011] | Differences vs. Emerging Average |
|---|---|---|---|
Brazil | Sao Paulo (Fasano) | 720 | 63% |
DEVELOPED MARKETS AVERAGE | 704 | 60% | |
Turkey | Istanbul | 659 | 49% |
United Arab Emirates | Dubai (Ritz-Carlton) | 613 | 40% |
Nigeria | Lagos (Federal Palace) | 597 | 35% |
Argentina | Buenos Aires | 520 | 18% |
Czech Republic | Prague | 517 | 17% |
Saudi Arabia | Riyadh | 460 | 4% |
EMERGING MARKETS AVERAGE | 441 | 0% | |
Mexico | Mexico City | 440 | -0.30% |
Hungary | Budapest | 421 | -5% |
Egypt | Cairo | 380 | -14% |
India | Mumbai | 378 | -14% |
South Africa | Johannesburg (The Westcliff) | 365 | -17% |
China | Shanghai | 359 | -19% |
Poland | Warsaw (Le Royal Meridien) | 259 | -41% |
Thailand | Bangkok | 234 | -47% |
Indonesia | Jakarta | 230 | -48% |
Malaysia | Kuala Lumpur (Ritz-Carlton) | 160 | -64% |
Sri Lanka | Colombo (Galle Face Hotel—Regency Wing) | 156 | -65% |
Footnotes:
If a city has no Four Seasons,the first alternative is Ritz Carlton followed by comparable hotels.
Hotels where two Four Seasons are located, the average price was used.
Developed markets average based on Four Seasons in the following cities: Chicago, Geneva, Hong Kong, London, Milan, New York, Paris, San Francisco, Singapore, Sydney and Tokyo.
Place your mouse on the
PS: Here EMA Is Emerging Market Average and DMA is Developed Market Average.
Breakout Nations Hotel Price Index [Updated 2024]
Country | City (Name of alternate property if applicable) | Rates in USD ($) [August 2024] | Differences vs. Emerging Average [2024] |
|---|---|---|---|
DEVELOPED MARKETS AVERAGE | 1103 | 136% | |
Turkey | Istanbul | 970 | 107% |
Hungary | Budapest | 779 | 66% |
Brazil | Sao Paulo (Fasano) | 718 | 53% |
South Africa | Johannesburg (The Westcliff) | 682 | 46% |
Czech Republic | Prague | 660 | 41% |
Argentina | Buenos Aires | 647 | 38% |
Mexico | Mexico City | 647 | 38% |
Thailand | Bangkok | 575 | 23% |
EMERGING MARKETS AVERAGE | 468 | 0% | |
Egypt | Cairo | 455 | -3% |
Saudi Arabia | Riyadh | 384 | -18% |
United Arab Emirates | Dubai (Ritz-Carlton) | 371 | -21% |
Indonesia | Jakarta | 335 | -28% |
Poland | Warsaw (Le Royal Meridien) | 299 | -36% |
China | Shanghai | 250 | -47% |
India | Mumbai | 215 | -54% |
Malaysia | Kuala Lumpur (Ritz-Carlton) | 203 | -57% |
Nigeria | Lagos (Federal Palace) | 167 | -64% |
Sri Lanka | Colombo (Galle Face Hotel—Regency Wing) | 143 | -69% |
Comparison between 2011 vs 2024 prices:
Country | AVERAGE of Rates in USD ($) [August 2011] | AVERAGE of Rates in USD ($) [August 2024] | Difference |
Nigeria | 597 | 167 | -430 |
United Arab Emirates | 613 | 371 | -242 |
India | 378 | 215 | -163 |
China | 359 | 250 | -109 |
Saudi Arabia | 460 | 384 | -76 |
Sri Lanka | 156 | 143 | -13 |
Brazil | 720 | 718 | -2 |
EMERGING MARKETS AVERAGE | 441 | 468 | 27 |
Poland | 259 | 299 | 40 |
Malaysia | 160 | 203 | 43 |
Egypt | 380 | 455 | 75 |
Indonesia | 230 | 335 | 105 |
Argentina | 520 | 647 | 127 |
Czech Republic | 517 | 660 | 143 |
Mexico | 440 | 647 | 207 |
Turkey | 659 | 970 | 311 |
South Africa | 365 | 682 | 317 |
Thailand | 234 | 575 | 341 |
Hungary | 421 | 779 | 358 |
DEVELOPED MARKETS AVERAGE | 704 | 1103 | 399 |
Countries with decrease or a slight (under 100$ ) increase in Prices.
Countries with significant increase in Prices.(Above 100$)
Developed Markets Average 2024 Data
City | Rate in USD |
|---|---|
Sydney | 263 |
EMERGING MARKETS AVERAGE | 468 |
San Francisco | 527 |
Singapore | 575 |
Chicago | 670 |
Hong Kong | 670 |
New York | 922 |
Tokyo | 934 |
DEVELOPED MARKETS AVERAGE | 1103 |
Geneva | 1126 |
London | 1800 |
Milan | 2252 |
Paris | 2395 |
Notice how affordable Sydney is, despite being a developed country.
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