US Hotel Industry Sees Growth Amid Political and Environmental Factors in November 2024 :: Hospitality Trends

• The US hotel industry saw an increase in revenue per available room (RevPAR) by 2.5% in November 2024, influenced by factors like the presidential election, hurricane recovery efforts, and an extra weekend.
• Hurricane recovery efforts significantly impacted the lower chain scales, and the Luxury segment led growth with an increase of 5.3% in RevPAR.

The US hotel industry experienced an unusual November in 2024, with significant influencing factors such as the presidential election, a year-over-year Thanksgiving calendar shift, ongoing hurricane recovery efforts, and an extra weekend.

Despite these disruptions, the industry saw a 2.5% increase in revenue per available room (RevPAR), with occupancy growth being the main driver. The occupancy rate remained 2 percentage points less than in November 2019, and the average daily rate (ADR) increased by 0.9%.

The industry experienced unusual growth trends, with Midscale and Economy RevPAR increasing by more than 5%, while Upper Upscale, Upscale and Upper Midscale averaged 2.6% growth. The Luxury segment continued to lead with a 5.3% increase in RevPAR.

The ongoing recovery efforts from Hurricanes Helene and Milton significantly impacted hotels in the lower chain scales. The seven most affected markets saw a 30.3% rise in RevPAR. Room demand in November 2024 increased by 2.2% year-on-year, marking the sixth gain in the past eight months.

Despite the highest supply growth since 2022, new construction projects declined. Group and Transient demand in Luxury and Upper Upscale hotels remained strong, increasing 2.9% and 2.1% year to date, respectively. RevPAR growth within the top 25 markets varied significantly, with a 20-point difference between the highest and lowest growth.