U.S. Hotel Industry Stumbles In Early September With Occupancy And Revenue Down Year-over-year
The U.S. hotel industry faced a sharp decline in early September, with occupancy and revenue dropping significantly compared to the same period last year.
The U.S. hotel sector faced a downturn during the first week of September, as per the latest figures from CoStar. From 1 to 7 September 2024, key performance metrics, including occupancy, average daily rate and revenue per available room all saw declines compared to the same week in 2023.
Occupancy dropped to 57.8%, marking a 4.2% decrease year-over-year. ADR saw a slight dip of 1.0%, averaging US$149.67, while RevPAR experienced a steeper fall of 5.2%, settling at US$86.48. These trends indicate a cooling demand in the hotel industry as inflation and wider economic issues continue to weigh on performance.
While Houston and Detroit showed strong growth, the broader U.S. hotel market continues to face challenges, marked by uneven regional performance. As the fall season approaches, hoteliers are expected to closely monitor trends and adapt strategies to manage the current slowdown in growth.