Horwath HTL releases its 2024 United States Hospitality Market Report

The report offers a panoramic view of this new landscape, capturing the pulse of recovery, investment shifts and trends that are defining the future of hotels and travel.

Key Takeaways:

• The hotel industry is experiencing a notable recovery post-pandemic, with demands and Revenue Per Available Room (RevPAR) expected to surpass pre-pandemic levels. A particular surge in wellness travel and business travel has been observed, alongside an increase in meeting and event budgets.

• Weekly occupancy rates have shown resilience, with an incremental rise in Average Daily Rate (ADR) contributing to a slight increase in RevPAR, despite a slight decline in occupancy compared to the previous year.

• Investment focus has pivoted towards acquisitions instead of building new hotels, with select-service and extended-stay hotels drawing significant interest due to their robust RevPAR recovery and operational efficiencies.

• Wyndham stands as the preeminent brand in the US hotel landscape, while Texas remains the epicentre for the number of hotels.

• Investor sentiment is cautious amidst escalating interest rates and inflation, heightening the risk of loan defaults and pricing challenges, particularly for smaller lenders.

• The strategic interplay of location selection, operational efficiency and brand alignment continues to be pivotal in driving hotel performance and investor returns.