Record RevPAR Growth in U.S. Hotel Industry: Highest in Nearly Two Years
In December 2024, the U.S. hotel industry concluded the year with the most substantial performance gains in almost two years. There was a 4.4% increase in Revenue per Available Room (RevPAR) compared to December 2023. This marked the most significant year-over-year gain since March 2023.
The impressive results in December were fueled by a condensed holiday season and the lingering effects from fall hurricanes that displaced travelers. For the first time since February 2024, Average Daily Rates surpassed inflation. Simultaneously, occupancy saw an increase by 0.6 percentage points.
“December RevPAR was up 4.4%, which was the country’s largest year-over-year gain since March 2023,” according to STR data from CoStar.
Group demand particularly benefited from the shortened holiday season, with an increase of 5.0%. Transient demand also saw a rise of 2.0%. Despite challenges from inflation and supply chain issues, U.S. RevPAR increased 1.8% for the full year 2024.
The Top 25 Markets showcased the strongest performance with RevPAR increasing 2.7%. This demonstrates the continued resilience of major urban destinations. Industry experts anticipate this momentum to continue into 2025 as travel demand remains robust and new hotel development accelerates.