H2 STR and Tourism Economics Forecast Higher U.S. Hotel Revenue for 2023 and 2024
– STR and Tourism Economics have raised their revenue per available room (RevPAR) projection for 2023 by 0.3 percentage points due to a “lift in ADR growth,” now projecting full-year 2023 RevPAR of $97.84, up 4.8 percent year over year.
– The companies also project 2023 average daily rates (ADR) of $155.47, up 4.2 percent year over year, and a 0.6 percentage-point increase from the previous forecast.
– Stronger group activity and returning international visitors are expected to support still-solid RevPAR gains, offsetting potential economic factors such as tighter fiscal policies and higher interest rates.
– U.S. hotel occupancy for 2023 has been slightly downgraded to 62.9 percent, up 0.6 percent year over year, 0.2 percentage points lower than the previous forecast.
– Looking at 2024, STR and TE project ADR to increase 3 percent year over year to $160.16, and RevPAR to increase 4.1 percent to $101.82, with occupancy forecasted to increase 1 percentage point year over year to 63.6 percent.
Crafting a compelling 500-word article that not only appeals to search engine algorithms but also entices our readership is crucial. We will delve into the details of the latest forecast from STR and Tourism Economics, focusing on the upward trend in U.S. hotel revenue for 2023 and 2024.
In the latest forecast, STR and Tourism Economics have raised their projection for 2023 U.S. hotel revenue, specifically the revenue per available room (RevPAR), by 0.3 percentage points. This increase is attributed to a “lift in ADR growth,” with full-year 2023 RevPAR now projected to reach $97.84, marking a 4.8 percent year-over-year increase. Additionally, the forecast for 2023 average daily rates (ADR) has been adjusted to $155.47, up 4.2 percent year over year. These adjustments reflect the continued buoyancy of travelers, as room rates have outperformed previous forecasts.
The positive outlook for 2023 is further supported by the expectation of stronger group activity and the return of international visitors, which are anticipated to contribute to solid RevPAR gains. However, potential economic factors such as tighter fiscal policies and higher interest rates could pose challenges to this growth trajectory.
While the forecast for 2023 shows an increase in RevPAR and ADR, the projected U.S. hotel occupancy for the year has been slightly downgraded to 62.9 percent, although it still represents a 0.6 percent year-over-year increase. Looking ahead to 2024, STR and Tourism Economics foresee continued growth, with ADR projected to increase by 3 percent year over year to $160.16, and RevPAR expected to increase by 4.1 percent to $101.82. Occupancy is also forecasted to rise by 1 percentage point year over year to 63.6 percent.
In conclusion, the latest forecast from STR and Tourism Economics paints a positive picture for the U.S. hotel industry, with expectations of continued revenue growth in 2023 and 2024. The upward trend in average daily rates and RevPAR, coupled with anticipated improvements in group activity and international visitor numbers, bode well for the sector’s recovery. However, it will be essential to monitor economic factors that could impact this growth, such as fiscal policies and interest rates.