The hotel industry experienced a significant boost in performance during the week ending on November 16, 2024, largely driven by a mix of major events and increased group demand. One of the standout factors influencing the U.S. sector was the Formula 1 Grand Prix held in Las Vegas, coinciding with Veterans’ Day and an adjusted Thanksgiving holiday. These events disrupted usual travel patterns, yet remarkably, Revenue per Available Room (RevPAR), excluding Las Vegas, still rose by 4.3%. This growth was achieved through a combination of heightened occupancy and rising average daily rates (ADR).
Cities such as Tampa, New Orleans, Houston, and San Diego witnessed a surge in group demand, leading to RevPAR increases exceeding 20%. This demonstrates a strong appetite for group travel and events in these locations. Additionally, the luxury and upper-upscale hotel segments saw a 1.8% increase in room nights, surpassing 2019 levels, indicating a robust recovery and growing consumer confidence in higher-end accommodations. As the industry headed towards Thanksgiving, further strong performance was anticipated due to a final rush of business and conference travel, cementing November’s success.
Globally, the trend was equally positive with RevPAR achieving a notable 10.2% growth, marking the third consecutive week of double-digit increases. This surge was predominantly driven by ADR, which climbed by 7.7%. Among the regions, Japan led the RevPAR growth with a 22.9% increase, followed by impressive gains in Mexico, Indonesia, Italy, and Canada. Such international trends underscore a widespread recovery and a renewed eagerness for travel, both domestically and abroad.
Looking ahead, optimism remains high. December is expected to maintain this upward trajectory, with the holiday season providing another opportunity for strong performance. The industry’s resilience in the face of calendar disruptions and major events speaks volumes about its adaptability and the increasing demand for travel. Taylor Swift’s tour will also continue to bolster Canada’s economic landscape, acting as a splendid addition to the holiday boost. As ADR and group demand continue to climb, the hotel sector seems well-positioned for ongoing growth and recovery.
