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EXTENDED-STAY HOTELS reported mixed results in November compared to the broader hotel industry, as supply and demand showed gains and occupancy declined
less than the total hotel industry, according to The Highland Group. However, the 2.2 percent net increase in extended-stay room supply for the month, consistent
with September and October figures, represents a slight uptick compared to the average over the last 17 months.
Also, relatively low ADR growth led to a modest increase in extended-stay hotel RevPAR.
Supply growth stayed below 4 percent for the 26th consecutive month in November, well under the long-term average, The Highland Group said. The 13 percent
increase in economy extended-stay supply and decline in mid-price segment rooms mainly result from conversions, as new construction in the economy segment is
estimated at about 3 percent of rooms open compared to one year ago.
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U.S. HOTEL REVPAR is expected to grow steadily in 2024, driven by improving group business, inbound international travel, and traditional transient business
demand, according to CBRE. This follows a strong performance in 2023 that muted the new forecast in some areas.
The research firm forecasted a 3 percent increase in RevPAR growth in 2024, with occupancy improving by 45 basis points and ADR increasing by 2.3 percent. It
indicates ongoing recovery of the lodging industry, with RevPAR in 2024 expected to surpass 2019 levels by 13.2 percent, CBRE Hotels said in a statement.
CBRE's baseline forecast expects 1.6 percent GDP growth and 2.5 percent average inflation in 2024. Given the strong correlation between GDP and RevPAR growth,
the economy's strength will directly impact the lodging industry's performance, the statement said.
"We expect RevPAR growth to be slower in the first quarter due to last year's strong performance, but to reach its peak in the third quarter driven by the influx
of inbound international travelers during the busy summer season," said Rachael Rothman, CBRE's head of hotel research and data analytics. "Urban and airport
locations should particularly benefit from group and inbound international travel, as well as the normalization of leisure travel."
NEARLY EIGHT IN 10 Americans plan to travel by car to their summer destination, with the majority citing the enjoyment of driving, according to a recent
survey commissioned by G6 Hospitality, parent company of the Motel 6 and Studio 6 brands. Most travelers prefer hotel stays, though they acknowledge that cost
will influence their travel plans.
The study, surveying 2,000 Americans with summer leisure plans, found that 80 percent distinguish between a "trip" and a "vacation".
"There's nothing better than cruising on the highway with the windows down, sun shining and music playing, especially when you're surrounded by your loved
ones - even those on four legs," said Julie Arrowsmith, G6 Hospitality's president and CEO. "Whether you're the planner or just along for the ride, Motel 6
and Studio 6 provide pet-friendly and affordable lodging so you can relax, enjoy the journey and focus on creating memories."
APPROXIMATELY 70.9 MILLION U.S. travelers are expected to journey 50 miles or more from home over the Independence Day holiday, according to the latest
AAA forecast. For the first time, AAA considered the entire week of July 4th, plus the Saturday before and the Sunday after the holiday. This year's projected
number of travelers marks a 5 percent increase from 2023 and an 8 percent increase from 2019.
"With summer vacations in full swing and the flexibility of remote work, more Americans are taking extended trips around Independence Day," said Paula Twidale,
AAA Travel's senior vice president. "We anticipate this July 4th week will be the busiest ever with an additional 5.7 million people traveling compared to 2019."
AAA estimated a record 60.6 million people will travel by car over Independence Day week, an increase of 2.8 million from last year. This year's number also
surpasses the 55.3 million who traveled by car over July 4th week in 2019.