Our 4Q23 Hospitality Earnings Summary is now available! We’re thrilled to share positive insights into the hotel industry’s recovery. A glimpse:
- 4Q23 U.S. RevPAR change was -4.4% to 5.0% driven by mixed growth and decline in ADR. Economy and Midscale reliant brands reported slowest (zero or negative) RevPAR change
- Full year guidance implies 2024 RevPAR change stabilized around 2.5% to 4.5%
- US leisure demand showed softness last quarter driven by seasonality, but the slowdown was mitigated by continued growth in international travel. Several companies expect growth in 2024 due to evidence of strong leisure travel demand
- Business demand grew 7% to 14% Y/Y, driven by small-to-medium businesses; companies anticipate gradual return of special large corporate. Expected 2024 corporate rate growth is in mid-single digits (Hilton)
- Urban markets showed strong demand growth in both Leisure and Business, benefitting from increased citywide demand and urban-based events ranging from conferences to concerts
- Group Revenue OTB for 2024 is 8% to 21% ahead of STLY and 2025 is 11% to 12% ahead of STLY
- 2023 EBITDA margin is mixed vs STLY due to higher operating and fixed costs, including property taxes, property insurance costs, incentive management fees, and utilities. Labor cost increases are primarily due to guest volume. Renovations are contributing to lower margins but expected to pay off by the end of 2024
Download the full summary to stay up-to-date: hotelAVE 4Q23 Hospitality Earnings Summary
