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USA Hospitality Market Report, January 2024

By Paul Breslin CHA, CHE, ISHC on 20/1/2024

Cropped shot of tourist woman pulling her luggage to her hotel bedroom after check in.

As we navigate through a post-pandemic world, the hospitality industry stands at a crossroads of opportunity and adaptation. Our Market Report offers a panoramic view of this new landscape, capturing the pulse of recovery, investment shifts, and trends that are defining the future of hotels and travel. In this executive summary, we’ve distilled key insights that not only reflect the resilience of the sector but also signal the strategic directions that can propel growth and innovation.

Key Takeaways

  • The hotel industry is experiencing a notable recovery post-pandemic, with demands and Revenue Per Available Room (RevPAR) expected to surpass pre-pandemic levels. A particular surge in wellness travel and business travel has been observed, alongside an increase in meeting and event budgets.
  • Weekly occupancy rates have shown resilience, with an incremental rise in Average Daily Rate (ADR) contributing to a slight increase in RevPAR, despite a slight decline in occupancy compared to the previous year.
  • Investment focus has pivoted towards acquisitions instead of building new hotels, with select-service and extended-stay hotels drawing significant interest due to their robust RevPAR recovery and operational efficiencies.
  • Wyndham stands as the preeminent brand in the US hotel landscape, while Texas remains the epicenter for number of hotels.
  • Investor sentiment is cautious amidst escalating interest rates and inflation, heightening the risk of loan defaults and pricing challenges, particularly for smaller lenders.
  • The strategic interplay of location selection, operational efficiency, and brand alignment continues to be pivotal in driving hotel performance and investor returns.
Cropped shot of tourist woman pulling her luggage to her hotel bedroom after check in.

About the author

Paul Breslin CHA, CHE, ISHC

Paul Breslin, Managing Partner of Panther Hospitality, is a 30-year veteran of the hospitality industry. His background within the industry is all encompassing, as he has extensive experience in hotel operations, development and asset management with major branded hotels as well as independent and smaller luxury hotels. After his experience of working with eleven different hotels and resorts in ten different cities over the years, Mr. Breslin founded Panther Hospitality in 2005 to provide consulting services to developers and hoteliers in all aspects of their businesses. From property acquisition and infrastructure development to the successful opening and operating of a hotel, Mr. Breslin and his team of industry professionals leverage their expertise and customize their services to meet the needs of their global client base. He and his team have successfully consulted on a variety of establishments within the industry, including boutique hotels, both limited and full-service hotels, as well as luxury hotels. Major brands such as Hilton, Marriott, Starwood, IHG and Hyatt have worked with Panther Hospitality, as well as independent resort hotels such as the Inn on Destin Harbor, Daytona Beach Resort & Conference Center, Foxhall Resort and Sporting Club and Barnsley Gardens Resort. Previous to founding Panther Hospitality, Mr. Breslin held positions at the world-famous Fontainebleau Hilton Resort and Spa, the Sheraton San Diego Resort, the Sheraton New Orleans and three convention hotels in Atlanta, Georgia. He became a Certified Hotel Administrator (CHA), which is the most prestigious hospitality certification available to a hotel general manager and hospitality executive. Mr. Breslin, who is qualified as a Certified Hospitality Educator (CHE), is also a respected and well-known teacher and leader within the industry. He is the Executive-in-Residence in Lodging in the J. Mack Robinson College of Business, Cecil B. Day School of Hospitality at Georgia State University. The GSU program was recently ranked as one of the top 25 hospitality programs in the nation according to the Journal of Hospitality and Tourism Education. He has trained senior level executives at the Rixos Hotel Leadership Training Program through Sabanci University in Turkey and is a frequent lecturer at national conventions and hospitality industry conferences throughout the United States. Mr. Breslin has also been quoted on hospitality issues in publications such as The Wall Street Journal, USA Today, Atlanta Business Chronicle, Atlanta Journal-Constitution and The Miami Herald. He has also appeared on the Clark Howard Show. In addition to his work as a consultant and educator, Mr. Breslin provides hotel expert witness services to attorneys specializing in litigation, bankruptcy, real estate, franchising, employment and personal injury cases related to the hospitality industry. His caseload as an expert witness over the years includes work with both plaintiffs and defendants.