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THE U.S. HOTEL construction pipeline increased year-over-year in September for the seventh straight month, according to STR. Investor sentiment remains positive following the Federal Reserve's September interest rate cut, as shown by continued double-digit growth in the planning and final planning stages of the pipeline. In CoStar's pipeline, 157,253 rooms were under construction in September, a 7 percent increase from last year. An additional 268,190 rooms were in final planning, up 10.4 percent, while 336,205 rooms were in planning, up 38.4 percent. "Growth in rooms in construction has accelerated over the last seven months," said Isaac Collazo, STR's vice president of analytics. "Despite higher interest rates throughout 2024, developer appetite has remained strong. With the recent rate cut in September and more on the way, investor sentiment remains positive, as evidenced by continued double-digit growth across the planning and final planning stages of the pipeline. Upscale and upper midscale continue to account for about 50 percent of all rooms in the final phase, while luxury and midscale showed the highest growth in rooms in construction, up 48.5 percent and 34.5 percent, respectively."

U.S. HOTEL DEMAND declined by 0.5 percent year over year in the third quarter of 2023, according to CBRE. Simultaneously, there was a matching 0.5 percent increase in supply. The combined effect of these factors led to a 1 percent decrease in occupancy. ADR increased by 0.6 percent during the quarter, marking the slowest improvement since the pandemic recovery began 10 quarters ago, the CBRE data revealed. RevPAR decreased by 0.3 percent, as a modest decline in occupancy was partially offset by the rise in ADR. Despite sustained consumer spending, hotel demand and pricing power in Q3 were hampered by competition from alternative lodging sources like short-term rentals and cruise lines, along with an uptick in outbound international travel. According to the report, hotel wage growth in September outpaced the national average of 4.3 percent, registering at 4.7 percent, but declined from 7 percent at year-end 2022. Average hourly hotel wages fell nearly $10 below the national average, suggesting ongoing pressure for wage increases.

U.S. HOTEL PERFORMANCE increased in the fourth week of September compared to the week before, according to STR. Performance also improved when compared to 2019. Occupancy was 70 percent for the week ending Sept. 24, increased slightly from 69.6 percent the week before and decreased just 1.5 percent from 2019. ADR was $157.99 for the week, up from $155.58 the week before and increased 15.7 percent from three years ago. RevPAR reached $110.60 during the week, increased from $108.25 the week before and up 13.9 percent from 2019. Among STR's top 25 markets, Orlando reported the highest occupancy increase for September's fourth week, up 7.9 percent to 72.2 percent, over 2019.

U.S. HOTEL PERFORMANCE dropped in the first week of September compared to the previous week, according to CoStar. Key metrics such as occupancy, RevPAR and ADR all declined both week-over-week and year-over-year. Occupancy fell to 57.8 percent for the week ending Sept. 7, down from 63.9 percent the previous week and 4.2 percent lower year-over-year. ADR was $149.67, down from $153.67 the prior week and 1 percent lower than the same week last year. RevPAR fell to $86.48 from $98.18, marking a 5.2 percent decrease compared to the same period in 2023. Among the top 25 markets, Houston saw the highest year-over-year increase in occupancy, rising 8 percent to 57.1 percent, while RevPAR increased 18.5 percent to $65.62. Houston and Detroit reported the largest ADR increases, rising 9.7 percent to $115.02 and 9.7 percent to $129.21, respectively. Las Vegas recorded the steepest RevPAR drop, falling 18.6 percent to $106.24, followed by Boston, with an 18.3 percent decline to $151.11.

U.S. HOTEL PERFORMANCE improved in the second week of September compared to the previous week, but year-over-year results remained negative, according to CoStar. Key metrics-occupancy, RevPAR and ADR-all saw week-over-week growth. Occupancy rose to 66.6 percent for the week ending Sept. 14, up from 57.8 percent the previous week but 1.7 percent lower year-over-year. ADR reached $162.05, an increase from $149.67 the prior week and 0.2 percent higher than the same week last year. RevPAR climbed to $107.86 from $86.48, though it marked a 1.4 percent decline compared to the same period in 2023. Among the top 25 markets, San Diego posted the highest year-over-year occupancy gain, up 10.5 percent to 79.9 percent. Chicago recorded the largest ADR increase, up 15.5 percent to $216.57

U.S. HOTEL PERFORMANCE has increased in the second week of September compared to the previous week, according to CoStar. However, year-over-year comparisons remained mixed. Occupancy stood at 68.5 percent for the week ending on Oct. 14, a slight uptick from the previous week's 67.8 percent, and a marginal year-over-year decline of 2.3 percent. ADR increased to $164.25, up from the previous week's $163.19, marking a 3.2 percent surge compared to the previous year. RevPAR also showed improvement, reaching $112.51, surpassing the previous week's $110.68, and reflecting a 0.8 percent rise from 2022. Among the top 25 markets, Oahu Island experienced the highest year-over-year growth in occupancy, rising by 17.8 percent to reach 85.2 percent, while RevPAR increased by 29.7 percent to $243.22.

The September 2023 issue of Asian Hospitality magazine offers in-depth coverage of the latest trends and developments in the hospitality industry. This edition highlights crucial topics such as the surge in hotel development, innovative technologies transforming the guest experience, and key insights from industry leaders. Readers can explore detailed articles on sustainability, financial performance, and the evolving landscape of extended-stay hotels. Additionally, the issue delves into diversity initiatives and workforce challenges, providing a comprehensive view of the hospitality sector's future. Stay informed with expert analysis and forward-thinking strategies shaping the industry in 2023 and beyond.