USA | Recent data has predicted a positive sign for the U.S. hotel industry a construction boom amid turbulent economic times globally.
The U.S. hotel industry reported improved performance results from the previous month, according to June 2024 data from CoStar. The significant growth has been linked to the local thriving hotel construction rate.
Occupancy remained flat at 69.6 percent, while the average daily rate (ADR) increased 1.5 percent to USD $161.30. Revenue per available room (RevPar) was USD $112.33, also up 1.5 percent.
Among the Top 25 Markets, New York City experienced the highest levels in each of the three key performance metrics: occupancy (+2.5 percent to 87.8 percent), ADR (+4.4 percent to USD $317.91) and RevPAR (+7.0 percent to USD $279.08). Markets with the lowest occupancy for the month included New Orleans (56.9 percent) and Phoenix (63.4 percent).
The Top 25 Markets showed higher occupancy and ADR than all other markets.
CoStar’s world-leading hotel performance sample comprises 82,000 properties and 10.7 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.
The volume of U.S. hotel rooms under construction reached its highest level in 16 months, according to CoStar’s latest June 2024 data.
“The number of rooms in construction has grown year over year for four consecutive months,” said Isaac Collazo, STR’s VP, analytics.
“While upscale and upper midscale continue to dominate, accounting for about 50 percent of all rooms in the final phase of the pipeline, the pace of activity in these segments has slowed compared to last year. Midscale and economy have shown the most growth, up 42 percent and 34 percent, respectively, with newer brands and extended-stay accounting for most of the new construction across the midscale segment.”
There are currently 157,713 hotel rooms in construction, an increase of 5.5 percent. Over 330,000 rooms are currently in the planning phase, an increase of 38.7 percent, and 266,000 rooms are in the final planning stage, an increase of 9.8 percent.
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