STR lowers U.S. hotel forecast for 2024/25
Increased cost of living is impacting lower to middle income households and their ability to travel, reducing demand for lower priced hotels
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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