CBRE: U.S. hotels see moderate summer, Q4 growth expected

U.S. HOTEL PERFORMANCE is expected to rebound in the fourth quarter and continue into 2025 despite subdued summer demand and a sluggish third quarter,
according to CBRE. RevPAR growth for 2024 is now projected at 0.5 percent, down from 1.2 percent in August, due to a 40 bps drop in expected occupancy.

Occupancy is forecast to decline 30 bps year-over-year while ADR is projected to rise 0.7 percent, 40 bps below earlier forecasts, the report said. RevPAR
growth is expected to rebound in the four quarter of 2024, driven by rate cuts, easing inflation and stock market gains.

“U.S. hotels performance was softer-than-expected during the summer months, partly due to Americans traveling overseas in record numbers,” said Rachael Rothman,
CBRE’s head of hotel research and data analytics. “At the same time, the slow recovery in inbound international travel has created an imbalance in U.S. leisure
demand. Despite this, continued improvements in group and business travel served as relative bright spots in the third quarter.”