US hotel occupancy sees 11.4 pc YOY surge in December 2024: CoStar

Tampa leads US hotel markets with 37.9 pc rise in occupancy
2025-01-02
/
/ New Delhi
US hotels
US hotel occupancy sees 11.4 pc YOY surge in December 2024: CoStar

New York City saw a significant uptick in performance, particularly in the luxury segment, with Average Daily Rate increasing

CoStar, a Washington D.C.-based real estate firm, has reported that US hotel occupancy climbed 11.4 pc year-over-year to 48.9 pc during December 15-21, 2024, indicating significant growth compared to the same period in 2023.
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In a significant boost for the US hospitality sector, hotel occupancy surged by 11.4 pc year-over-year, reaching 48.9 pc during December 15-21, 2024. This marked a notable recovery compared to the same period in 2023, as reported by hospitality tracking agency CoStar. The growth reflects a strong rebound in travel and demand for accommodations across the country.

In a press statement, CoStar says that among the Top 25 US hotel markets, Tampa stood out with the largest gains. Occupancy soared by 37.9 pc, reaching 71.5 pc, while RevPAR surged by 63.8 pc, rising to USD 110.51.

It adds that this performance is partly due to the ongoing recovery from hurricanes that devastated the region, which has spurred both tourism and business travel.

The statement adds that Tampa’s recovery efforts have made it one of the national leaders in performance growth over the last few months.

It adds that New York City also saw a significant uptick in performance, particularly in the luxury segment, with Average Daily Rate (ADR) increasing by 20.1 pc to USD 351.39. The city’s status as a global business and tourism hub, particularly during the holiday season, has contributed to strong demand for its higher-end accommodations.

CoStar says that ADR rose 2.7 pc to USD 135.79, while RevPAR surged 14.3 pc to USD 66.36. Despite these gains, performance dipped from the prior holiday-driven week due to seasonal slowdown.

It adds that not all markets saw such positive results. Oahu Island, a major tourist destination in Hawaii, experienced a downturn in key metrics. Occupancy fell by 4.0 pc, dropping to 66.4 pc, while ADR declined by 16.7 pc to USD 259.60. This resulted in a 20 pc  drop in RevPAR, bringing it down to USD 172.27.

The statement adds that this decline could be attributed to a variety of factors, including a possible slowdown in tourism following the peak summer and fall seasons, as well as shifting travel patterns that typically accompany the winter months.

CoStar says that seasonal trends significantly influenced hotel performance. Hanukkah’s timing boosted demand in cities with large Jewish populations, while a compressed business travel window spiked room demand before year-end.

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