Our hotelAVE Hospitality Dashboard 4Q23 is now available!
- Projected 2024 RevPAR growth of 2.7% to 4.2% is below 4.9% in 2023. Because the deceleration is ADR related, GOP margin pressures will continue in 2024.
- RevPAR flow to GOP was only 23% in the Top 25 markets; GOP margin decreased 100 bps in 2023. Labor cost growth exceeded revenue growth in most markets.
- US travel abroad has fully recovered; arrivals to the US improved but still below 2019. Gateway cities have had to look at other sources to backfill diminished international arrivals, with West Coast markets experiencing the most profound impact due to the delayed recovery in Asian inbound travel.
- New supply under construction is decelerating; many projects are no longer feasible or are stuck in financing limbo. While traditional new supply is shrinking, shadow inventory continues to grow.
- Debt spreads are easing, though the benchmark rates remain stubbornly high. Interest rates and tighter underwriting standards create challenges for borrowers looking for construction or refinance proceeds. Some debt funds are starting to price competitive with the banks.
Download the full summary to stay up-to-date: hotelAVE Hospitality Dashboard 4Q23
