Skip to content

Search

Latest Stories

CBRE: U.S. hotel demand declines slightly in Q3

Occupancy rates across all location types for the quarter were under 2019 levels

CBRE: U.S. hotel demand declines slightly in Q3

U.S. HOTEL DEMAND declined by 0.5 percent year over year in the third quarter of 2023, according to CBRE. Simultaneously, there was a matching 0.5 percent increase in supply. The combined effect of these factors led to a 1 percent decrease in occupancy.

ADR increased by 0.6 percent during the quarter, marking the slowest improvement since the pandemic recovery began 10 quarters ago, the CBRE data revealed. RevPAR decreased by 0.3 percent, as a modest decline in occupancy was partially offset by the rise in ADR.


Despite sustained consumer spending, hotel demand and pricing power in Q3 were hampered by competition from alternative lodging sources like short-term rentals and cruise lines, along with an uptick in outbound international travel.

According to the report, hotel wage growth in September outpaced the national average of 4.3 percent, registering at 4.7 percent, but declined from 7 percent at year-end 2022. Average hourly hotel wages fell nearly $10 below the national average, suggesting ongoing pressure for wage increases.

Certain smaller secondary markets in the South and Midwest exhibited strong relative RevPAR performance compared to 2019, the CBRE added. In the third quarter, Newark, Tampa, Houston, and New York City saw the most significant year-over-year growth in RevPAR.

Occupancy rates for all location types in the quarter were below 2019 levels. Town locations reached 97 percent, with urban locations slightly lower at 92 percent.

Meanwhile, total room nights sold decreased by 0.5 percent year over year, driven by a 1.4 percent decline in online travel agency demand. Global distribution system demand showed the most growth at 6.3 percent.

According to a recent report by Lodging Econometrics, the U.S. hotel construction pipeline expanded in the third quarter, rising 7 percent year-over-year in both projects and rooms. Despite this growth, the current project count is 3 percent below and rooms are 14 percent below the all-time high of 5,883 projects and 785,547 rooms reached in the second quarter of 2008.

More for you

IHCL denies sale of NYC’s Pierre Hotel
Photo credit: The Pierre

IHCL denies sale of NYC’s Pierre Hotel

Summary:

  • IHCL said reports of Taj exiting The Pierre Hotel are incorrect and misleading.
  • Media reported the Central Park hotel could sell for around $2 billion.
  • The company holds leasehold rights and continues to operate the New York hotel.

INDIAN HOTELS CO. Ltd. said media reports on Taj exiting its stake in The Pierre Hotel in New York are incorrect, misleading and speculative. In an exchange filing, IHCL stated it does not own The Pierre, but holds leasehold rights and continues to operate the hotel.

Keep ReadingShow less
Noble Investment Group Mobile Alabama

Noble breaks ground on StudioRes in Mobile, AL

Summary:

  • Noble broke ground on StudioRes Mobile Alabama at McGowin Park.
  • The 10th StudioRes expands Noble’s long-term accommodations platform.
  • Noble recently acquired 16 WoodSpring Suites properties through two portfolio transactions.

NOBLE INVESTMENT GROUP broke ground on StudioRes Mobile Alabama at McGowin Park, a retail center in Mobile, Alabama. It is Noble’s 10th property under Marriott International’s extended stay StudioRes brand.

Keep ReadingShow less
The Boxer Boston hotel sold by Hersha Hotels to Eurostars Hotels for $23.6 million
Photo Credit: The Boxer Boston

Hersha sells ‘Boxer Boston’ to Eurostars

Summary:

  • Hersha Hotels & Resorts sold The Boxer Boston to Eurostars Hotels.
  • The company acquired the property in 2012 for $12.6 million.
  • The property now sold for $23.6 million.

HERSHA HOTELS & RESORTS sold The Boxer Boston, an 80-room hotel in Boston’s West End, to Eurostars Hotels, part of Spain’s Grupo Hotusa. The company, which reportedly acquired the property in 2012 for $12.6 million, received $23.6 million for it.

Keep ReadingShow less
Peachtree Group Inc. 5000 2025

Peachtree receives two recognitions

Summary:

  • Peachtree recognized by Inc. and the Atlanta Business Chronicle.
  • Named to the 2025 Inc. 5000 list for the third year.
  • Chronicle’s Pacesetter Awards recognize metro Atlanta’s fastest-growing companies.

PEACHTREE GROUP ENTERED the 2025 Inc. 5000 list for the third consecutive year. The company also won the Atlanta Business Chronicle Pacesetter Awards as one of the city’s fastest-growing private companies.

Keep ReadingShow less
Olympic Wage ordinance 2028
Photo credit: Unite Here Local 11

Petition fails to stop L.A. hotels wage increase

Summary:

  • Failed petition clears way for Los Angeles “Olympic Wage” to reach $30 by 2028.
  • L.A. Alliance referendum fell 9,000 signatures short.
  • AAHOA calls ruling a setback for hotel owners.

A PETITION FOR a referendum on Los Angeles’s proposed “Olympic Wage” ordinance, requiring a $30 minimum wage for hospitality workers by the 2028 Olympic Games, lacked sufficient signatures, according to the Los Angeles County Registrar. The ordinance will take effect, raising hotel worker wages from the current $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.

Keep ReadingShow less