Hotel industry in 'normalization' mode

"Normalization" is the word of the day for hotel industry performance in the second quarter of 2023

Jul 27, 2023

Jan Freitag, CoStar's national director of hospitality analytics, said that demand is achieving more balance as it normalizes. The outsize demand for leisure is settling down, while the undersized demand for urban hotels is growing.

Key takeaways

  • Resorts had arguably over-indexed and are now coming back to a more normal level;
  • Urban hotels are still lacking corporate transient demand, coming back more slowly, and that means that there is more fuel in the tank for urban room rates;
  • All of the demand growth in the second quarter was in STR's top 25, and all other markets actually lost demand.

Get the full story at HNN

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