Increased cost of living is impacting lower to middle income households and their ability to travel, reducing demand for lower priced hotels
Jun 4, 2024
STR and Tourism Economics significantly downgraded the 2024-25 U.S. hotel forecast, reflecting lower-than-expected performance and reduced growth projections for the remainder of the year.
Key takeaways
- Projected gains in ADR and RevPAR were lowered by 1 and 2.1 percentage points, respectively;
- Occupancy is also expected to decline, in contrast to the previous forecast’s projection of year-over-year growth in this metric;
- While the 2025 occupancy growth forecast was maintained, ADR and RevPAR were revised downward by 0.8 and 0.9 percentage points, respectively, STR and TE said in a joint statement.
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