U.S. RevPAR to increase by 1.4% in 2024
Lodging Analytics Research & Consulting expects U.S. hotel RevPAR to grow 1.4% to $99.56 in 2024, driven by a 1.8% increase in ADR to $158.65 and occupancy declining slightly by 0.3% to 62.8%
In 2025, the company expects U.S. RevPAR to increase 2.5% to $102.02, driven primarily by a 3.1% increase in ADR to $163.55. However, occupancy is expected to decline by 0.6% to settle at 62.4%.
Key takeaways
- LARC expects U.S. hotel EBITDA to decline by 0.3% in 2024, along with modest margin compression, while hotel values are expected to increase by 3%;
- Looking ahead to 2025, LARC forecasts a 1.2% increase in U.S. hotel EBITDA, with modest margin compression, and a 2% increase in hotel values;
- Over the next five years, LARC forecasts a 10% cumulative increase in hotel values.
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