Hotel Occupancy & RevPAR Post Modest Gains

Executive Summary

• Overall hotel occupancy increased by 0.8% year-over-year in Q1, as demand growth of 2% outpaced a 0.6% supply increase.
• The average daily rate (ADR) rose by 2.2%, driving a 3.8% increase in revenue per available room (RevPAR).
• Occupancy rates remained below 2019 levels for all location types except interstate. Urban locations were the most below pre-pandemic levels at 93.5%.
• San Francisco led the nation in RevPAR growth in Q1, surging by 31% year-over-year due to AI-sector corporate travel.
• Job openings per hotel fell to 14 in February, down by 9% both year-over-year and from 2019 levels.
• New Orleans was the weakest growth market year-over-year due to a surge in demand last year from the Super Bowl.