U.S. Hotels State of the Union October 2023 Edition
A pictorial update on CBRE's latest thoughts and the facts and figures influencing the industry
CBRE raises combined 2023/2024 GDP outlook. CBRE raised its 2023/2024 outlook from 1.9% in June to 2.7% in September. The 2025 GDP forecast was negatively revised from 2.3% to 2.0%.
Key takeaways
- August RevPAR declined 0.7% on a 1.7% decline in occupancy. Urban locations posted the strongest RevPAR growth, up 3.7% but remained below 2019 levels. Summer travel trends remained consistent in July and August;
- Real RevPAR continues to decline as nominal RevPAR lags inflation. The spread between real and nominal RevPAR increased to 17.3 p.p. versus 14.1 p.p. in August of 2022. However, the pace of the spread widening appears to have abated;
- Total revenue growth continued to outpace RevPAR growth. In July, total revenue rose 2.5%. Unfortunately, gross operating profit margins and profit dollars remained under pressure declining 1.8 p.p. and 2.5%, respectively, year over year.
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