financeLodging Magazine··1 min·For: Owner, GM, Revenue, Investor
CoStar and Tourism Economics Lower 2024 Growth Forecast
Analysts have downgraded the 2024 U.S. hotel performance forecast due to lower-than-anticipated room rate growth and cooling leisure demand. While 2024 expectations are tempered, projections for 2025 suggest a stronger recovery in RevPAR and occupancy.
Key Takeaways
- 1Monitor RevPAR growth closely as CoStar and Tourism Economics lowered 2024 projections from 2.0% to 1.2% due to lower-than-expected ADR performance.
- 2Expect occupancy levels to remain relatively flat, with a slight downward revision to 63.3% for 2024 as the market stabilizes post-pandemic.
- 3Anticipate a moderate recovery in 2025 with RevPAR expected to grow 3.4%, driven by a projected 2.0% increase in ADR and improvement in group business travel.
Source: Lodging Magazine
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