- The U.S. hotel industry posted solid performance during the first week of December 2024 despite a slow start due to the Thanksgiving weekend. The Revenue Per Available Room (RevPAR) increased by 4.3%, with the Average Daily Rate (ADR) being the primary driver of this growth.
- Despite a slight decline in transient demand, group demand among Luxury and Upper Upscale hotels continues to grow. This trend has been consistent throughout the year, with the last four days of the week showing a 17.9% increase in group demand compared to the previous year.
As reported by STR, the first week of December 2024 marked a strong performance for the U.S. hotel industry despite initial setbacks due to the Thanksgiving weekend. The Revenue per Available Room (RevPAR) increased by 4.3%, with the Average Daily Rate (ADR) being the primary driver of this growth. Occupancy saw a marginal increase of 0.3 percentage points compared to the same week last year. The last three days of the week saw significant RevPAR gains, following a pattern seen in 2019.
Eight of the Top 25 Markets observed double-digit RevPAR gains, with Chicago leading the pack with a 42.9% increase. This was primarily due to the Radiological Society of North America (RSNA) conference. New York City maintained its leading position in terms of occupancy and RevPAR.
Despite a 1.3% decline in transient demand, group demand among Luxury and Upper Upscale hotels has continued to grow. The last four days of the week saw a 17.9% increase compared to the previous year. This trend has been consistent throughout the year, reflecting strong group demand.
Globally, excluding the U.S., RevPAR advanced by 9.1%. Japan and Canada led the way with significant RevPAR growth. The impact of China’s economic stimulus on hotel industry performance remains to be seen.
According to AAA, the industry anticipates a record number of holiday travelers to close out 2024. Despite a cautious forecast due to the Christmas and New Year’s calendar shift, the industry remains hopeful for a strong finish to the year. Looking ahead, January’s occupancy on the books shows a net positive, with global performance expected to continue its growth trajectory through ADR in the foreseeable future.
