STR, TE project positive growth for U.S. hotels in 2024-25

STR AND TOURISM Economics updated their 2024-25 U.S. hotel forecast, raising projected occupancy by 0.2 percentage points and revising the previous forecast
of a year-over-year decline. However, ADR gains were downgraded by 0.1 percentage points, while RevPAR remained unchanged at a 2 percent year-over-year increase.

The occupancy growth projection for 2025 was also lifted by 0.2 percentage points, while ADR and RevPAR increases remained at 2 percent and 2.6 percent,
respectively, STR and TE said in a joint statement.

“Midscale and economy hotels are continuing to feel the effect of fewer lower-income travelers,” said Amanda Hite, STR’s president. “On the other hand,
high-income households continue to travel, but domestic levels are constrained due to an increase in outbound travel. The stronger dollar continues to pressure
international inbound demand, especially as the cost-of-living crisis continues in Europe and airlift rebuilds across Asia Pacific.”