Reported 4 months ago
Lower-income Americans have scaled back their travel spending in April, leading to decreased demand for hotel stays in the U.S. Wealthier Americans continued to travel, but the decline in lower-income travelers' bookings affected the overall U.S. hotel room demand, especially in midscale and economy hotels. CoStar adjusted its yearly forecast due to slowing GDP and reduced demand from cost-conscious travelers, anticipating a 2.1% rise in average daily room rates and a 2% increase in revenue per available room in 2024, lower than previous projections. Overall, occupancy levels are expected to drop slightly to 62.8% compared to 63% in 2023, with a 0.8% supply growth in 2024.
Source: YAHOO