U.S. RevPAR Projected to Jump 4% in 2024
Skift Take
- Deutsche Bank's conference highlighted mixed optimism in the lodging and gaming sectors, with expectations of growth driven by international markets. Revised forecasts for the U.S. hotel industry in 2023 indicate slight adjustments in occupancy, ADR, and RevPAR predictions.
- The sector saw various activities, including MHG's acquisition of Marriott West Palm Beach Airport, 3H Group's plans for a new Hilton in Florida, and the opening of a new Holiday Inn Express in Arizona. International expansions and renovations were also notable, with new properties and rebranding efforts in several countries.
- Valencia Hotel Group rebrands to Valencia Hotel Collection, marking its 20th anniversary with leadership restructuring and expansion plans. Libertyland USA, a mixed-use development, is set to open in South Dakota by 2026, featuring an indoor waterpark and other amenities. Agora Realty & Management acquires a 73-acre site in Las Vegas for mixed-use development.
The DJIA was up 204 points while Nasdaq was up 159, the S&P 500 rose 33 points and the 10-year Treasury yield was down .04 to 4.42%. Lodging stocks were higher. HLT traded up to another new high, AHT was up 5% but SOND plunged another -7% to another new low.
Deutsche Bank gave a recap of their recent Gaming, Lodging, Leisure & Restaurant Conference. They said optimism around forward trends varied among the constituents with lodging, Las Vegas and regional gaming operators expressing confidence about their respective domestic outlooks, with caveats around the longevity of the health of the consumer. Operators expect RevPAR to be led by international markets, specifically Asia Pacific which faces easy 1H24 comps. Domestic RevPAR is expected to be led by the continued group segment recovery. Confidence in net unit growth remains high among the lodging C-Corps, given under construction openings and a similar percentage of conversions, led in part
