US: Hotel ADR continues to trail the rate of inflation
From a real ADR perspective, hotels are trending downward and remain below the inflation-adjusted 2019 numbers
U.S. hotel performance data improved in May, but still lags behind inflation. May saw the highest monthly growth in revenue per available room since March 2023, up 4% after a 1.9% increase in April. The average daily rate also rose 2.4% in May, in line with STR's latest forecast from early June.
Key takeaways
- Downtown locations are currently thriving, and this trend is expected to continue into the summer with increased leisure demand and hopefully into the fall, which is a key meeting season;
- Outbound travel from the U.S. increased 11% year-over-year in May, maintaining a strong pace despite concerns of a potential plateau;
- However, inbound travel to the U.S. remains below 2019 levels, which continues to be a challenge for hotels.
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