After a first quarter that finished below its expectations, CBRE
Hotels Research on Thursday lowered its projected year-over-year increases for
full-year 2024 U.S. average daily rate, occupancy and revenue per available
room. Still, business travel demand remains solid, according to the company.
CBRE now projects 2024 U.S. RevPAR to increase 2 percent
year over year, down from the 3 percent it
forecast in February. The company projects a year-over-year increase in
2024 ADR of 1.7 percent, down from 2.3 percent in its previous forecast, and a
0.2 percent increase in occupancy, down from a 0.4 increase.
The culprit for the lowered projection was a
softer-than-forecast first quarter. Overall first-quarter RevPAR declined 2.1
percent year over year, including a 4.1 percent drop in March, driven by slower
economic growth than the company anticipated, persistent inflation and the
shift of the Easter holiday from April in 2023 to March in 2024, impeding
business travel demand at the end of the quarter.
Still, CBRE in a statement noted that “corporate and group
continued to improve, with demand nearly reaching 2019’s levels.”
“We anticipate modest growth over the next few
quarters, supported by a continued uptick in visitors from overseas and
election-related events, such as political party conventions,” said CBRE head
of hotel research and data analytics Rachael Rothman in a statement.
