Hotel RevPAR Growth Accelerates on Strong Q3 Demand

Executive Summary

• Overall hotel occupancy increased by 1.8 percentage points year-over-year to 67.7% in Q3, as demand growth of 3.0% outpaced a 0.4% supply increase.
• The average daily rate (ADR) rose by 4.3%, driving a 7.0% increase in revenue per available room (RevPAR).
• Occupancy rates remained below 2019 levels for all location types. Resort locations remained the weakest, with occupancy 6.5 percentage points below the Q3 2019 level.
• Memphis was the top market for RevPAR growth in Q3, with a 21% year-over-year increase.
• Year-over-year hotel wage growth of 4.7% well outpaced both the overall national average and the rate of inflation.