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Key Takeaways
- U.S. investors have generally positive sentiment about the hotel market this year, with half of those surveyed planning to increase their hotel investments in anticipation of higher total returns and lower prices. Strengthening the balance sheet and difficulty in securing and servicing debt are the top challenges for those who plan to buy less this year.
- Central business districts (CBDs) and resorts are the most favored location types, while upper-upscale and upscale/upper-midscale are the most popular chain-scale targets in 2024. We expect RevPAR growth of 3.1% for urban locations from increased group, business and international travel. We also expect that steady leisure demand and modest ADR gains will support 1.6% RevPAR growth for resort locations.