U.S. hotel industry faces performance decline in early September 2024

WASHINGTON – The U.S. hotel industry experienced a decline in performance during the first week of September, according to CoStar‘s latest data. From 1-7 September 2024, the industry’s occupancy, average daily rate (ADR), and revenue per available room (RevPAR) all posted decreases compared to the same period in 2023.

National Performance Overview

Occupancy for the week stood at 57.8%, representing a 4.2% drop year-over-year. The ADR declined slightly by 1.0% to US$149.67, while RevPAR saw a more substantial fall of 5.2%, landing at US$86.48. These figures suggest a cooling in demand across the hotel sector as the industry navigates inflationary pressures and broader economic challenges.

Top 25 Markets Insights

Among the Top 25 U.S. hotel markets, Houston emerged as the standout performer. The city recorded an 8.0% increase in occupancy, bringing it to 57.1%, alongside an 18.5% surge in RevPAR to US$65.62. Houston also saw a notable 9.7% lift in ADR, reaching US$115.02, sharing the largest ADR increase with Detroit, where ADR similarly rose by 9.7% to US$129.21.

On the other end of the spectrum, Las Vegas and Boston posted the sharpest declines in RevPAR. Las Vegas experienced an 18.6% drop, reducing RevPAR to US$106.24, while Boston saw an 18.3% decline, bringing its RevPAR to US$151.11.

While key markets like Houston and Detroit showed resilience, the broader U.S. hotel industry is grappling with declining performance metrics, reflecting both regional variations and ongoing market challenges. As the industry heads into the fall season, hoteliers will be closely monitoring demand trends and adjusting strategies to navigate this period of slower growth.

The article U.S. hotel industry faces performance decline in early September 2024 first appeared in TravelDailyNews International.