U.S. Hotel Industry Faces Structural Issues as Expenses Outpace Revenue Growth, Despite Strong Occupancy Rates
🏨 U.S. hotel occupancy reached 66.8% for the week ending March 28, with ADR at $170.30 and RevPAR up 8.3% year-over-year. However, expenses above GOP rose 4.1% and below GOP by 3.6% in 2024, outpacing the 2.3% revenue growth. Hospitality faces labor and cost pressures, with 71% of owners citing goods costs as a major concern. Investment volumes rose 22% from 2023 to 2025, with regulatory changes in LA and NY impacting the industry.
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