CBRE: RevPAR Growth Predicted to Improve in the Second Half of 2024

CBRE projects a modest 2.0 percent increase in revenue per available room (RevPAR) growth for 2024, down from the earlier estimate of 3.0 percent. 

Despite a weak first quarter, RevPAR is expected to grow by 3.0 percent for the rest of the year, driven by international tourists, holiday travel, and limited supply growth.

CBRE forecasts GDP growth of 2.3 percent and average inflation of 3.2 percent in 2024. The lodging industry's performance closely follows economic trends, reflecting the correlation between GDP and RevPAR growth.

CBRE’s head of hotel research, Rachael Rothman, anticipates modest growth supported by increased overseas visitors and election-related events.

CBRE also expects RevPAR to reach a nominal record of $101.20 this year, 115 percent of pre-pandemic levels, with a 1.7 percent ADR growth and a 0.2 percent increase in occupancy. 

However, slower RevPAR growth is attributed to softer demand, persistent inflation, and high interest rates, which impact discretionary spending.

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