Colliers - U.S. Hospitality Brand Performance Comparison Report | Q1 2024
The Average Daily Rate (ADR) and Revenue Per Available room (RevPAR) growth for the greater U.S. hospitality market was nearly flat in Q1 2024, increasing by 2.6% and 1.5% respectively. Occupancy rates trended downward, decreasing by 1.1% when compared to the same period a year prior. A slowdown in hotel room demand has been a partial influence behind the softening of the hospitality market’s operating fundamentals. While hotel room demand has receded the last four consecutive quarters, the Easter and Passover calendar shift had a significant downward impact on demand in Q1 2024, and in-turn impacted occupancy rates, ADR and RevPAR. While highend leisure travel has been resilient and Q1 marked a potential return of corporate transient travel, sticky inflation and higher costs of living has stunted hotel room demand for lower-income households. A stabilization of demand measures, in the wake of an irregular holiday calendar, will be focal point through the rest of the 2024, particularly through the summer months. Despite a cloudy economic outlook, continued regulation and in-place regulation on short-term rentals should drive summertime leisure travel demand towards hotels. ADR is expected to continue to grow so long as inflation measures continue to come in above the Fed’s target level of 2%.
This Colliers U.S. Hospitality Data Snapshot compares the operating performance of the wider U.S. Hospitality sector to the operating performance of the U.S.’s major hospitality brands and sub-brands.
