Executive Summary
- The occupancy rate of hotels increased by 0.4% in Q1 compared to the same period last year as demand growth of 1,0% outpaced supply expansion of 0.6%.
- A slight increase in occupancy and a 1.9% increase in the average daily rate (ADR) led to an increase of 2.2% in revenue per room available (RevPAR). A rise in business travel during Q1 was partly offset in March by a drop of 11.6% for international travelers.
- The demand for alternative lodging options grew faster than the traditional hotel industry. Demand for short-term rentals (including cruises) and hotels grew by 45% and 9 %, respectively, compared to Q1 2019.
- In Q1, hotel wage growth was 4%, which is the same as the national average. Hotel job openings fell by almost 9% from 17 to 15
- All location types had lower occupancy rates in Q1 2019, but, with the exception of resorts, all locations saw an increase year-over-year. Urban locations were 92% of their 2019 levels while interstate location were closest to the pre-pandemic level at 99.5%.
- New Orleans’ RevPAR grew due to the Super Bowl, while Tampa RevPAR grew because of hurricane relief efforts. Washington, D.C., West Palm Beach, and Columbus rounded out top five RevPAR markets for Q1 2025, probably due to the demand generated by the presidential inaugural.
CBRE Group, Inc.
CBRE Group, Inc.NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE offers a wide range of integrated services to a variety of clients, including property management, investment management, appraisal and valuation, property leasing, strategic consulting, property sales, mortgage services, and development services. Visit our website: www.cbre.com.
