The latest U.S. hotel industry outlook remains stable with minor adjustments. For 2024, STR and Tourism Economics have slightly reduced the Average Daily Rate (ADR) growth forecast to 2%, while occupancy expectations have increased slightly to 63%. Revenue per Available Room (RevPAR) growth is expected to remain steady at 2%. For 2025, occupancy is projected to rise to 63.4%, with ADR and RevPAR growth unchanged at 2% and 2.6%, respectively. Strong demand in the second quarter of 2024 has led to slight upward revisions in occupancy projections.
RevPAR growth is primarily driven by rate increases rather than occupancy, with the upper-upscale segment seeing the most significant gains due to strong group demand. Conversely, midscale and economy segments are expected to experience negative RevPAR growth for the rest of the year, though improvements are anticipated in 2025.
Top 25 U.S. markets are leading in RevPAR gains, contributing 45% of industry revenue. Outside these markets, performance is hindered by increased upscale supply. Regional disparities remain, with some markets like San Francisco showing slower recovery, while others like New York City are seeing high demand and rates.
National
- US Government Raises Hotel Per Diem Rates to $110 Starting in October
- Despite Slower Economic Growth, Outlook for US Hotels Remains Positive
- Independent Hoteliers Leverage Flexibility To Give Guests What They Want
- Next Phase of Hotel Revenue Management Centers Around Profits
- Hoteliers Weigh Opportunities, Methods of Marketing to Travelers Across Generations
Washington
- Developers Purchase Land for Marriott StudioRes Hotel in Moses Lake, Washington
- AAA: Seattle Remains Top Labor Day Weekend Destination
Montana
Idaho
- Sun Valley Eyes Large Village Revamp, with Future Hotel & Conference Expansion, Too
- $999 Per Night: A Burst of Downtown Hotels Brings Change to Boise — and It’s Not Over
Oregon
Market Expert
- CO FA.100091977
