Hotel performance is settling into typical patterns after the dramatic swings seen across the globe over the past three years, according to a blog from STR, the data provider, The industry’s three-legged stool of group, leisure and business, according to the blog, is showing stability. Group business is expected to remain healthy based on the strong showing at the end of 2023. Leisure travel shows no sign of slowing; however, the destination choice may shift as the domestic/international traveler mix for many countries resets, which will help some regions and slow others.

The elusive business traveler segment, according to the blog, is expected to continue growing in “baby steps;” however, most analysts are not predicting full recovery of traditional business travel but rather a shift in business travel patterns with remote workers, blended travel and the end of recession talk driving this segment forward.

US hotel performance decreased for the week ending Jan. 6 from the previous week, while year-over-year comparisons improved, according to data provider CoStar, parent company of STR.

The results for the week from Dec. 31, 2023 through Jan. 6, 2024 (percentage change from comparable week in 2023) included:
Occupancy: 46.8% (down 0.7%)
Average daily rate (ADR): $152.17 (up 7.2%)
Revenue per available room (RevPAR): $71.28 (up 6.4%)

Among the Top 25 Markets, New Orleans saw the largest year-over-year increases in each of the three key performance metrics: occupancy (up 36.5% to 61.2%), ADR (up 43.5% to $211.90) and RevPAR (up 95.9% to $129.62). The market’s performance was helped by the Sugar Bowl, Fan Expo New Orleans, and multiple Mardi Gras parades.

Supported by New Year’s Eve, New York City posted the second-highest gains in ADR (up 33.6% to $260.35) and RevPAR (up 49.9% to $189.85).

The steepest RevPAR declines were seen in Las Vegas (down 38.3% to $124.81) and Dallas (down 8.6% to $49.03).

Image: Courtesy of Hotel Indigo