International Visitors Spent Nearly $20.1 Billion Traveling Within the United States in March
National Travel and Tourism Office (NTTO) | May 23, 2024
CBRE Expects RevPAR Growth to Improve in H2 2024, Driven by Holiday and International Travel
CBRE Group, Inc. | May 16, 2024
Market Reports
International Tourism Reached 97% of Pre-Pandemic Levels in the First Quarter of 2024
UN Tourism | May 21, 2024
International tourist arrivals reached 97% of pre-pandemic levels in the first quarter of 2024. According to UN Tourism, more than 285 million tourists traveled internationally in January-March, about 20% more than the first quarter of 2023, underscoring the sector’s near-complete recovery from the impacts of the pandemic. In 2023 international tourist arrivals recovered 89% of 2019 levels and export revenues from tourism 96%, while direct tourism GDP reached the same levels as in 2019. UN Tourism’s projection for 2024 points to a full recovery of international tourism with arrivals growing 2% above 2019 levels. In line with this, the...
U.S. hotel performance for April 2024 Shows Mixed Performance
CoStar Group | May 21, 2024
WASHINGTON – 21 May 2024 – The U.S. hotel industry reported mixed performance results from the previous month, but positive comparisons year over year, according to April 2024 data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets. April 2024 (percentage change from April 2023): Occupancy: 65.2% (+1.2%) Average daily rate (ADR): US$157.31 (+0.8%) Revenue per available room (RevPAR): US$102.51 (+2.0%) Among the Top 25 Markets, New York City experienced the highest levels in each of the three key performance metrics: occupancy (+2.8% to 84....
PwC’s US Hospitality Directions – May 2024
PwC Hospitality Directions | May 21, 2024
Economic uncertainty, an upcoming election and geopolitical tensions to likely impact hotel performance through 2025 Growth in leisure demand has moderated for US hotels. Domestic travelers have continued to seek out experiences internationally and inbound international traffic has yet to recover to pre-pandemic levels. An increased appeal of short-term rentals by leisure travelers has contributed to moderating leisure demand for hotels. Individual business travel and group demand have continued to improve but have still not been able to offset the softening of leisure demand. As a result, occupancy levels have declined year-over-year in eac...
Paris Market Pulse 2024 – Going for Gold
Maxime Gauthier | May 20, 2024
By Maxime Gauthier, Alexandra Dumoulin The City of Light enjoys a well-balanced blend of business and leisure demand resulting in both a broad seasonality and strong average rates. Since 2015, Paris has faced multiple challenges which highly disrupted hotel performances. As the city was recovering from the 2015-16 terrorist attacks, the ‘yellow vests’ movement and pension reform strikes of 2018-19, as well as the transportation strike of 2019, the COVID-19 pandemic hit the world. The market has since shown remarkable resilience and has gradually recovered, reaching record levels of RevPAR in 2023. Despite and throughout this tumultuou...
Soaring Passenger Traffic, Longer Stays: Mastercard Economics Institute on Travel in 2024
Mastercard Economics Institute | May 20, 2024
PURCHASE, N.Y. | MAY 20, 2024 – The travel sector in 2024 is breaking boundaries. Through March 2024, consumer spending on travel is robust with significant increases in passenger traffic, according to the latest global report from the Mastercard Economics Institute. Released today, “Travel Trends 2024” provides comprehensive insights into the evolving landscape of the travel industry across 74 markets. Despite fluctuating exchange rates and varying levels of affordability, the desire to travel remains stronger than ever. In 2024 the travel sector is flourishing, with nine out of the last 10 record-setting spending days in the glob...
CBRE Expects RevPAR Growth to Improve in H2 2024, Driven by Holiday and International Travel
CBRE Group, Inc. | May 16, 2024
Dallas – May 16, 2024 – CBRE expects revenue per available room (RevPAR) growth to improve in the second half of 2024, following a weaker-than-expected first quarter. CBRE’s latest forecast projects a 2.0% increase in RevPAR growth for 2024, down from the 3.0% estimated in February 2024. RevPAR is now expected to grow by 3% for the remainder of the year, driven by international tourists, holiday travel and limited supply growth. CBRE forecasts GDP growth of 2.3% and average inflation of 3.2% in 2024. The performance of the lodging industry is closely tied to the strength of the economy, as there is typically a strong correlation be...
Sporting Events Elevated Madrid Hotel Performance in April
CoStar Group | May 16, 2024
WASHINGTON – 16 May 2024 – Pushed by the Madrid Open and the UEFA Champions League quarterfinals, Madrid's hotel industry posted double-digit performance growth in April, according to preliminary data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets. April 2024 (year-over-year % change): Occupancy: 79.5% (+6.6%) Average daily rate (ADR): EUR184.20 (+16.6%) Revenue per available room (RevPAR): EUR146.43 (+24.2%) The annual, two-week-long Madrid Open commenced late in the month and pushed Madrid’s daily occupancy to as high as 93.4% (Wednesd...
U.S. Hotel Performance Reports Higher Performance From Previous Week
CoStar Group | May 16, 2024
WASHINGTON – 16 May 2024 – The U.S. hotel industry reported higher performance from the previous week and positive comparisons year over year, according to CoStar’s latest data through 11 May. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. 5-11 May 2024 (percentage change from comparable week in 2023): Occupancy: 66.1% (+2.1%) Average daily rate (ADR): US$162.14 (+4.4%) Revenue per available room (RevPAR): US$107.24 (+6.6%) Among the Top 25 Markets, San Francisco reported the highest year-over-year increases in each of the three key performance ...
Sun, Sand, Sea, and Luxury: The Rebound of Barbados Following COVID-19
Kristina M. D'Amico | May 16, 2024
By Kristina M. D'Amico Barbados is an independent English-speaking Commonwealth country and the easternmost island of the Caribbean. It is one of the most mature tourist destinations in the Caribbean. The island is known for offering some of the most serene beaches in the world, as well as an abundance of dining options, local shopping experiences, outstanding golf courses, and numerous other attractions. According to Barbados Tourism Marketing Inc. (BTMI), approximately 80% of visitors to the island come for vacation or tourism purposes. The following graph shows the historical stopover visitation data for Barbados. Number of Stopove...
Sydney Hotels Saw Improved Performance in April
CoStar Group | May 15, 2024
WASHINGTON – 15 May 2024 – Sydney's hotel industry recorded year-over-year increases in each of the three key performance metrics, according to April preliminary data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets. April 2024 (year-over-year % change): Occupancy: 72.6% (+7.1%) Average daily rate (ADR): AUD247.70 (+0.2%) Revenue per available room (RevPAR): AUD179.86 (+7.3%) The market’s highest daily occupancy levels were seen on the night of the first IMA MEAPAC Summit held in Sydney (Wednesday, 10 April: 86.7%), closely followed by th...
Understanding the Current State of the Hotel Transaction Market
Eric Guerrero | May 15, 2024
By Eric Guerrero, Josh Williams The hotel transaction market continues to face significant headwinds. Investors are still concerned about the prohibitive cost of debt, and with the chances of a summer rate cut from the Fed becoming slimmer, expensive debt may remain for the foreseeable future. Additional challenges to getting deals done are the bid-ask spread, rising operational costs, and extensive change-of-ownership property improvement plans (PIPs). As ownership groups consider placing their hotel assets on the market, they should consider how these headwinds are affecting buyer underwriting so that they have realistic pricing expectat...
Middle East Hotel Construction Pipeline Rises to 612 Projects/144,222 Rooms at Q1 2024
Lodging Econometrics (LE) | May 15, 2024
May 15, 2024 – PORTSMOUTH, NH – The Q1 2024 Hotel Construction Pipeline Trend Report for the Middle East from Lodging Econometrics (LE) reveals, at Q1, the hotel construction pipeline in the region increased to 612 projects/144,222 rooms, up 5% by projects year-over-year (YOY). At Q1 2024, projects currently under construction stand at 302 projects/80,589 rooms. Projects scheduled to start construction in the next 12 months stand at 133 projects/30,447 rooms, up 28% by projects YOY and 24% by rooms YOY. Projects in the early planning stage stand at 177 projects/33,186 rooms, up 18% by projects and 12% by rooms YOY. New project announce...
A Deep Dive Into Japan’s Hotel ADR Growth Trends
CoStar Group | May 14, 2024
Analysis by Kelsey Fenerty Japan’s growth in hotel revenue per available room (RevPAR) has remained extremely impressive over the past 15 months – a function of a later opening post-pandemic, above-average inflation, and an influx of international demand. That’s largely reflected in average-daily-rate (ADR) growth, although through much of 2023, the first and third points helped drive double-digit occupancy increases as well. Occupancy growth has trailed off, however, with single-digit increases or declines year over year for the past five months. At the same time, rates have grown mor...
Forty-Five Percent of Hotel Projects in Europe’s Total Pipeline Are Under Construction at the End of Q1 2024
Lodging Econometrics (LE) | May 14, 2024
May 14, 2024 – PORTSMOUTH, NH – Lodging Econometrics (LE) has released its Q1 2024 Hotel Construction Pipeline Trend Report for Europe. According to LE analysts, the region’s total pipeline stands at 1,705 projects/253,777 rooms at the close of the first quarter. As of the first quarter's close, 45% of the hotel projects in Europe’s total pipeline are in the under construction stage, standing at 762 projects and 117,815 rooms. Another 411 projects with 60,356 rooms are scheduled to start construction in the next 12 months, while 532 projects with 75,606 rooms are in the early planning stage, slightly below the record-high reported ...
Nearly 44 Million Travelers Leaving Town for Unofficial Start of Summer
AAA | May 13, 2024
WASHINGTON, DC (May 13, 2024) – AAA projects 43.8 million travelers will head 50 miles or more from home over the Memorial Day holiday travel period*. This year’s total number of travelers is a 4% increase over last year and comes close to matching 2005’s record of 44 million Memorial Day travelers. “We haven’t seen Memorial Day weekend travel numbers like these in almost 20 years,” said Paula Twidale, Senior Vice President of AAA Travel. “We’re projecting an additional one million travelers this holiday weekend compared to 2019, which not only means we’re exceeding pre-pandemic levels but also signals a very busy summe...
Upscale and Upper Midscale Chain Scales Reach New Highs as China’s Construction Pipeline Grows
Lodging Econometrics (LE) | May 13, 2024
May 13, 2024 – PORTSMOUTH, NH – Lodging Econometrics’ (LE’s) Q1 2024 Hotel Construction Pipeline Trend Report reveals steady growth in China's construction pipeline, with 3,775 projects encompassing 695,212 rooms. The total pipeline in the country continues to expand, increasing 3% by projects and 2% by rooms year-over-year (YOY). At the close of the first quarter, China has 2,691 projects and a record-high 488,560 rooms under construction. Additionally, there are 377 projects/65,193 rooms scheduled to start construction in the next 12 months, while 707 projects/141,459 rooms are in the early planning stage. Projects in early plann...
Travel & Tourism Set To Add a Record QAR 81BN to Qatar’s Economy
The World Travel & Tourism Council | May 10, 2024
Sector set to break all records in 2024 Dubai, UAE: The World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR) has revealed the Qatari Travel & Tourism sector reached new heights last year, with GDP contribution, jobs and domestic traveller spend all surpassing previous peaks. Last year, the Travel & Tourism’s GDP contribution grew by 31% to reach a record-breaking QAR 81.2BN, representing 10.3% of Qatar’s total economic output, demonstrating the sector’s importance to the national economy. The sector also proved to be a vital source of employment, creating more than 20,300 new jobs, and rais...
U.S. Hotel Performance Showed Mixed Results Through 4 May
CoStar Group | May 10, 2024
WASHINGTON – 10 May 2024 – U.S. hotel performance showed mixed results from the previous week, according to CoStar’s latest data through 4 May. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. 28 April through 4 May 2024 (percentage change from comparable week in 2023): Occupancy: 64.4% (-0.8%) Average daily rate (ADR): US$159.97 (+1.3%) Revenue per available room (RevPAR): US$103.09 (+0.5%) Among the Top 25 Markets, Seattle reported the highest year-over-year increase in occupancy (+8.1% to 69.4%). Dallas posted the largest lift in ADR (+5.8% t...
Amsterdam Market Pulse – Full Recovery In Sight
Maxime Gauthier | May 10, 2024
By Maxime Gauthier With a population of more than 930,000 , the capital city of Amsterdam lies on the coast of the province of North Holland. The city – known for its historic canals, the famous Van Gogh Museum, the Rijksmuseum, and the coffee shops of the Red Light District – is also a significant financial and business centre in Europe. There were more than 3,500 international companies in the Amsterdam Metropolitan Area (AMA) in 2023, representing more than 30% of the private-sector jobs. The city is highly accessible via local, national and international transport links. Amsterdam has excellent domestic and international connecti...
Hyatt Reports First Quarter 2024 Results
Hyatt | May 9, 2024
CHICAGO (May 9, 2024) - Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today reported first quarter 2024 results. Highlights include: Comparable system-wide hotels RevPAR increased 5.5% compared to the same period in 2023 Comparable system-wide all-inclusive resorts Net Package RevPAR increased 11.0% compared to the same period in 2023 Net Rooms Growth was approximately 5.5% Net Income was $522 million and Adjusted Net Income was $75 million Diluted EPS was $4.93 and Adjusted Diluted EPS was $0.71 Adjusted EBITDA was $252 million Pipeline of executed management or franchise ...
Asia Pacific Excluding China Hotel Construction Reaches New Highs With 13% Year-Over-Year Project Count Growth
Lodging Econometrics (LE) | May 9, 2024
As seen in the Q1 2024 Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total pipeline in the Asia Pacific region, excluding China, (APEC) reached a record-breaking project total of 2,021 projects/402,312 rooms. This new all-time high represents a 7% year-over-year (YOY) increase in projects and a 2% YOY increase in rooms. At the close of the first quarter, there are 866 projects/198,267 rooms under construction throughout the region. Additionally, there are 340 projects/65,259 rooms scheduled to start construction in the next 12 months, marking a 13% YOY increase in projects and a 10% increase YOY in rooms. The...
Iconic Resort Destination Ocean City, MD Is Poised for Success
Michael Lambdin | May 8, 2024
By Michael Lambdin, Scott Killheffer Ocean City, Maryland, a perennial draw for travelers along the Eastern Seaboard, continues to solidify its reputation as a leading resort destination. Ocean City is known for its expansive beaches and its boardwalk and welcomes millions of visitors annually. This robust tourism industry fuels a thriving hospitality market, and recent strategic investments underscore Ocean City's focus on providing exceptional experiences for a range of visitors. The market’s hospitality sector is experiencing a dynamic transformation. Two beachfront resorts have recently undergone complete makeovers. First, the for...
Choice Hotels International Reports First Quarter 2024 Results
Choice Hotels | May 8, 2024
Record Global Rooms Pipeline, up 10% Sequentially including a 36% Increase for Conversion Hotels Repurchases $196.6 Million of Common Stock Year-to-Date through April 30, 2024 Relaunches Park Inn by Radisson NORTH BETHESDA, Md., May 8, 2024 -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's leading lodging franchisors, today reported its first quarter 2024 results. Highlights include: Net income was $31.0 million for first quarter of 2024, representing diluted earnings per share (EPS) of $0.62. As a result of one-time items, including due diligence and transaction pursuit costs, and the timing of net reimbursa...
Management Company Compensation Slows in 2023
Robert Mandelbaum and Tim Dick | May 8, 2024
By Robert Mandelbaum, Tim Dick Prior research conducted by CBRE Hotels Research revealed that hotel management companies were rewarded handsomely as the U.S. lodging industry recovered from the COVID-19 pandemic. An analysis performed by CBRE in April 2023 found that total hotel revenue increased by 153% from 2020 to 2022, while Gross Operating Profits (GOP) grew by 437%. This resulted in a 68% increase in the fees paid to management companies and brought management fees back to pre-pandemic levels. The increases in fees were largely due to the improved performance of U.S. lodging properties, which in turn triggered the payment of incentiv...
