Citing improving business travel, international and group demand, CBRE Hotels Research on Thursday reiterated its projection for year-over-year gains in 2024 U.S. hotel occupancy, average daily rate and revenue per available room.
CBRE maintained its projection for a 2024 U.S. RevPAR increase of 3 percent year over year and an ADR increase of 2.3 percent, holding to its most recent forecast in November 2023. The company projects an occupancy increase of 45 basis points, up from 40 on November.
The forecast assumes a year-over-year increase in 2024 U.S. gross domestic product of 1.6 percent and average 2024 inflation of 2.5 percent. “We expect RevPAR growth to be slower in the first quarter due to last year’s strong performance, but to reach its peak in the third quarter driven by the influx of inbound international travelers during the busy summer season,” CBRE head of hotel research a data analytics Rachael Rothman said in a statement.
U.S. RevPAR in 2023 increased 3.2 percent year over year to $95.84, and ADR increased 2.7 percent, according to CBRE.
