US hotels have had a steady revenue growth in 2024, despite latest decline
Hotel industry in the United States has faced a downturn for the week ending October 5, as performance metrics reflected the impacts of calendar shifts from Rosh Hashanah and Columbus Day, along with the devastation of Hurricane Helene.
According to a press statement by American real estate and analytics platform STR, revenue per available room (RevPAR) in the US fell by 7.7 pc year over year, driven by a 4.4 pc drop in average daily rate (ADR) and a 2.3 percentage point (ppt) decline in occupancy.
All chain scales experienced declines, with the Upper Upscale segment suffering the largest drop of 13.5 pc in RevPAR, marking the steepest fall in 2024 so far. According to the STR data, western US markets saw the sharpest decline in RevPAR, with Las Vegas experiencing a significant drop of 25.9 pc due to a 16.5 pc dip in group demand.
The statement adds that Northeast markets faced a 7.1 pc drop in RevPAR, particularly during weekdays. However, Hurricane Helene led to a surge in hotel demand in states like North Carolina, South Carolina and Georgia, where occupancy gains exceeded 15 percentage points in key markets like Charlotte and Sarasota.
The statement adds that group demand decreased nationally, falling 18.3 pc in luxury and upper upscale hotels. Despite this, markets like Tampa and Houston saw RevPAR growth due to post-hurricane recovery efforts.
Global RevPAR above USD 100 for the 16th week this year
On the global front, RevPAR exceeded USD 100 for the 16th week in 2024, driven primarily by a 1.3 ppt rise in occupancy. Australia’s performance saw a boost from spring holidays, with a 7.6 pc increase in RevPAR led by Brisbane and Canberra. China showed mixed results, with occupancy up due to Golden Week, though ADR declined by 8.9 pc.
According to the report, Mexico faced challenges from storm activity, leading to a drop in hotel occupancy across several regions, while Indonesia maintained strong growth, with a 15.7 pc ADR rise.
STR says that looking ahead, the US hotel performance is expected to improve despite the looming impact of Hurricane Milton. Its data suggests positive trends for the week ending October 12. Globally, hotel performance is projected to remain stable, with China potentially benefiting from recent economic stimulus measures.
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