US hotel performance expected to improve
While the U.S. economy is expected to slow next year, the hotel industry continues to recover and grow
In a presentation during the PKF Hospitality Group's virtual 196+ Summit Americas 2023, Jan Freitag, national director of hospitality market analytics for CoStar, said hotel demand is expected to grow 1.8% in 2024. That demand growth should translate to occupancy growth of 1% because hotel supply growth won’t be a big headwind for the industry.
Key takeaways
- The long-term average for supply growth is 2.1%, but the 2024 forecast is 0.8%, Freitag said;
- Room rate growth of 4.2% this year and 3% next year are basically at the current level of inflation;
- That means revenue per available room is expected to grow 4.8% this year and 4% in 2024.
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