PERSPECTIVE
Ready , Set ,
Go !
U . S . HOTEL INVESTMENT SET TO ACCELERATE IN 2024 , PARTICULARLY IN TOP URBAN MARKETS .
Contributed by OPHELIA MAKIS , SR . ANALYST , AMERICAS HOTELS RESEARCH , JLL HOTELS & HOSPITALITY GROUP
Despite the expectation of prolonged economic uncertainty and geopolitical headwinds in 2024 , U . S . hotel performance is forecasted to remain above prepandemic levels and provide a favorable backdrop for hotel investors . On the demand side , leisure travel will gradually normalize amidst increased outbound travel options . Conversely , group , business and international travel will continue to reemerge as return-to-office mandates grow and consumers prioritize spending on travel . This will underpin a boost in performance for U . S . urban markets , including New York , Boston , Chicago and San Francisco , among others .
Rates will also remain elevated through 2024 ; however , there are signs of ADR growth slowing down due to pricing fatigue . Since April 2023 , trailing-12-month ADR has consistently grown less than 1 %, month-over-month . Nevertheless , the U . S . hotel industry is expected to deliver robust performance in 2024 , with year-end RevPAR forecasted to
36 hotelsmag . com Jan / Feb 2024