Hotel industry acheives equilibrium
By Brittney Sherman
According to a recent CoStar Hospitality Data Podcast, the month of November marked the “return to equilibrium” for the hotel industry.
As a whole, during the month of November hotel industry RevPAR increased 2.7%, room rates increased 3.8%, and occupancy decreased 1.1%. Breaking those numbers out by scale, upper-upscale RevPAR increased 5% while economy RevPAR decreased by 5%. The luxury chain room rate decreased 0.9% however the room rate for the luxury hotel scale as a whole increased 5%, driven mainly by the impact of the Formula 1 event on the Las Vegas hotel market. TSA posted record travel data during the Thanksgiving week resulting in a much-needed leisure travel surge for hotels at the end of the month.
Projections for December are being based on traditional last minute corporate holiday travel patterns and a plunge in occupancy over the Christmas holiday. What do experts predict for the start of 2024? No growth during the first two quarters of the year, but also no decline; a state of equilibrium.
Listen to the full Podcast HERE.
