The global hotel industry is experiencing mixed performance in 2024, with some markets thriving while others are struggling. A report by CBRE Hotels Research highlighted modest pressures facing the industry from economic uncertainty, changing travel patterns, and increased competition from alternative accommodations. Despite these challenges, few areas are experiencing significant losses.
In the United States, CBRE revised its forecast for growth in revenue per available room to just 1.2% for the year, down from previous projections. Urban and airport hotels are expected to outperform while resort locations are underperforming. Limited supply is helping to support prices, with expectations for minimal supply growth in the coming years.
In Europe, revenue per available room growth is expected to decelerate to around 5% for the year. Key gateway cities are forecasted to see healthy growth, driven by international visitors and corporate travel. Major events, such as concerts and sports matches, are boosting demand in the region.
The Gulf States are showing strength in the hotel industry, with the UAE and Saudi Arabia seeing significant growth in revenue per available room compared to pre-pandemic levels. However, geopolitical trends in the rest of the Middle East remain uncertain, posing potential challenges for the industry.
The Asia Pacific region is experiencing a rebound in the hotel industry, with most markets achieving revenue per available room growth. The region continues to face challenges related to aircraft shortages, but this problem is expected to improve with an increase in passenger counts in the coming years.
Potential headwinds to watch in the industry include the impact of a regional war on tourism in Israel and surrounding countries. The accommodations sector stock index performance year-to-date shows the performance of hotels and short-term rental sector stocks within the ST200, which includes companies publicly traded across global markets. The Skift Travel 200 combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number, providing insights into the industry’s financial health.
