2023 is the new baseline for hospitality benchmarking
U.S. hoteliers project an overall sense of normalization across the board in 2024, but it's hard to say which trends will permanently result in a new normal
With inflation still a concern, rate declines are not likely to happen on a large scale. Segmentation will shift. Instead of looking to 2019 as the benchmark, 2023 will be the new standard.
Key takeaways
- Following robust leisure demand over the past few years, the demand segment will reset to normalized levels in 2024;
- The overall projection for 2024 is for occupancy to remain flat with a small increase in ADR;
- Business travel remains at 10% to 20% below 2019 levels. Inbound international travel still lags 15% below 2019 levels. Airline capacity has improved but prices remain high.
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