U.S. Hotel Performance May Be Down But RevPAR Is Still Up
Photo Credit: The exterior of the Graduate Princeton hotel in Princeton, NJ Hilton
Skift Take
CBRE has lowered its U.S. hotel performance forecast for 2024 due to weakening leisure travel and corporate profits but still expects RevPAR growth driven by international tourism and election-related events.
The DJIA jumped 555 points while Nasdaq was up 402 (2.35), the S&P 500 rose 88 points and the 10-year treasury yield was up .11 to 3.93%. Lodging stocks were higher. The biggest mover was VCSA with a rise of 10%.
CBRE is reducing its forecast for U.S. hotel performance this year as lodging demand softens due to weaker-than-expected leisure travel and slowing corporate profit growth. CBRE now projects a 1.2% increase in RevPAR growth for 2024, down from the 2.0% estimated in May 2024. Nevertheless, CBRE anticipates 2% year-over-year growth in RevPAR in the second half of 2024, up from 0.5% year-over-year growth in the first half, driven by international tourism and election-related events. CBRE forecasts GDP growth of 2.3% and average inflation of 3.2% in 2024. They remain optimistic that RevPAR will achieve a nominal record of $100.54 this year, representing 114.5% of pre-pandemic levels
