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Report: U.S. hotels to generate record-setting tax revenue

Occupancy also continues to rebound, but labor also remains a problem

Report: U.S. hotels to generate record-setting tax revenue

U.S. HOTELS WILL generate $46.71 billion in state and local tax revenue, more than ever before, according to a survey from the American Hotel & Lodging Association and Oxford Economics. Occupancy is expected to continue its recovery, the report said, but challenges remain.

Average U.S. hotel occupancy is projected to reach 63.8 percent in 2023,  just under 2019’s level of 65.9 percent, according to AHLA. However, the labor shortage is expected to continue this year as hotels seek to fill jobs lost in the pandemic. As of December, national average hotel wages were at historic highs of more than $23 an hour and hotel benefits and flexibility are better than ever. Nearly 100,000 hotel jobs are currently open across the nation, according to job search site Indeed.


“Hotels are making significant strides toward recovery, supporting millions of good-paying jobs and generating billions in state and local tax revenue in communities across the nation,” said Chip Rogers, AHLA president and CEO. “To continue growing, we need to hire more people. Fortunately, there’s never been a better time to be a hotel employee, with wages, benefits, flexibility and upward mobility better than ever before.”

AHLA and its charity wing, the AHLA Foundation, in July expanded their “A Place to Stay” multi-channel advertising campaign to encompass 14 cities, including Atlanta, Baltimore, Chicago, Dallas, Denver, Houston, Los Angeles, Miami, Nashville, New York, Orlando, Phoenix, San Diego and Tampa.  Additionally, AHLA affiliate “Hospitality is Working” recently launched the Workforce & Immigration Initiative aimed at urging Congress to address workforce shortages with bipartisan solutions to incorporate more immigrants into the American economy.

The 10 states projected to have the highest gross increase in hotel-generated state and local tax revenue from 2019 to 2023 are:

  • Florida
  • California
  • Texas
  • Nevada
  • New York
  • Michigan
  • Massachusetts
  • New Jersey
  • Illinois
  • Maryland

ENEWS 02 22 23 AHLA tax revenue report chart 3 jobs The 10 states expected to have the highest direct and hotel-supported employment levels nationally in 2023.

On average nationally, every direct hotel job supports an additional 2.6 jobs in the community, according to AHLA. The 10 states expected to have the highest direct and hotel-supported employment levels nationally in 2023 are:

  • California
  • Florida
  • Nevada
  • Texas
  • New York
  • Pennsylvania
  • Georgia
  • Illinois
  • Arizona
  • North Carolina

The 10 states projected to have the highest hotel occupancy nationwide in 2023 are:

ENEWS 02 22 23 AHLA tax revenue report chart 2 top 10 The 10 states projected to have the highest hotel occupancy nationwide in 2023.

  • Hawaii
  • California
  • Alaska
  • Florida
  • District of Columbia
  • Arizona
  • New York
  • Washington
  • Colorado
  • Massachusetts

See embedded charts for details.

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U.S. Hotel Construction Drops to 40-Quarter Low: CoStar

CoStar: U.S. hotel construction hits 40-quarter low

Summary:

  • U.S. hotel rooms under construction fell year over year for the ninth month, CoStar reported.
  • About 137,956 rooms were under construction in September, down 12.3 percent from 2024.
  • In September, 12,746 midscale and 4,559 economy rooms were under construction.

U.S. HOTEL ROOMS under construction fell year over year for the ninth consecutive month in September, reaching the lowest level in 40 quarters, according to CoStar. Still, more rooms are under construction now than after the Great Recession.

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