CoStar’s Latest Data Shows Mixed Performance in U.S. Hotel Industry Compared to Previous Week

Friday, April 12, 2024

The latest data from CoStar, a leading provider of online real estate marketplaces, information, and analytics in the U.S. hotel markets, reveals a mixed performance in the industry compared to the previous week. However, positive year-over-year comparisons indicate a promising trend in the sector.

For the week of March 31 to April 6, 2024, the occupancy rate stood at 64.1%, marking a 4.7% increase from the same period in 2023. This growth suggests a strong recovery in travel and tourism, potentially driven by improving economic conditions and easing travel restrictions.

The Average Daily Rate (ADR) also showed a positive trend, with an increase of 2.1% to $156.96 compared to the previous year. This indicates that hotels are able to command higher prices, reflecting increased demand for accommodation.

Revenue Per Available Room (RevPAR), a key performance metric for the hotel industry, rose by 6.9% to $100.59 year-over-year. This growth is a positive sign for hotel operators, indicating improved profitability and performance.

Among the Top 25 Markets, Philadelphia reported the most significant year-over-year occupancy increase, jumping by 17.5% to 66.1%. The city also saw substantial growth in ADR (+17.3% to $165.11) and RevPAR (+37.8% to $109.10), driven by the hosting of WrestleMania 40.

Phoenix, boosted by the NCAA Men’s Final Four, posted the largest increases in ADR (+24.8% to $237.38) and RevPAR (+39.7% to $184.07). This highlights the impact of major events on hotel performance in key markets.

However, not all markets experienced growth. Orlando and Tampa saw declines in RevPAR, with decreases of 7.7% to $163.05 and 7.1% to $162.81, respectively. These declines could be attributed to various factors, including increased competition or changes in traveler preferences.

CoStar’s world-leading hotel performance sample comprises 81,000 properties and 10.5 million rooms globally, providing a comprehensive view of the industry’s performance. This data is valuable for stakeholders in the hospitality sector, helping them make informed decisions.

The positive year-over-year comparisons in the U.S. hotel industry indicate a gradual recovery from the impacts of the COVID-19 pandemic. As travel continues to rebound, hotels are expected to see further improvements in performance and profitability.

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• CoStar data reveals U.S. Hotel performance trends through March 2nd 2024