The U.S. hotel industry reported a week of varied but largely positive growth, ending on December 7, 2024, with mixed performance trends observable across different cities. The three primary metrics—occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR)—showed notable year-over-year improvements. Overall occupancy increased slightly by 0.5% to 59.0%, while ADR saw a more significant rise of 3.8% to $159.77. RevPAR, reflecting gains in both occupancy and ADR, climbed by 4.3% to $94.31. This data points to a steady recovery and justifies cautious optimism within the industry.
Among the top 25 markets, Chicago and Las Vegas emerged as standout performers, with considerable gains in both occupancy and revenue. Chicago led the way with an impressive 17.8% increase in occupancy to 67.6% and a striking 42.9% surge in RevPAR to $110.59. These figures underscore a strong resurgence in demand for hotel accommodations in the Windy City. Meanwhile, Las Vegas topped the charts for ADR, experiencing a substantial 27.1% increase to $261.33. These results indicate a broader recovery, particularly for major cities that attract both business and leisure travelers.
Conversely, not all regions shared in the success, as highlighted by the performance of San Francisco and New Orleans. These cities faced notable declines in key metrics, emphasizing ongoing challenges. San Francisco saw a significant drop in RevPAR by 16.7%, falling to $114.86. New Orleans experienced a similar trend with a 14.7% decrease in RevPAR, dipping to $83.16. Declining tourism, business events, or other local factors could be contributing to these struggles, as they lag behind their counterparts in recovery.
Overall, the data from December 2024 indicated a mixed but positive outlook for the U.S. hotel industry. While certain markets experienced remarkable growth, others continue to navigate obstacles and fluctuations in demand. This mixed performance across different regions underscores the importance of localized strategies for hoteliers. Recognizing and addressing unique challenges, while capitalizing on growth opportunities, will be crucial for sustaining progress and ensuring a more uniform recovery across the nation’s hotel industry in the coming months.
