U.S. – Hurricanes and rising incomes drive strong year-end demand growth, according to CBRE’s U.S. Hotel Figures 4Q 2017 report.
Hotel demand grew 3.7 percent nationally in 4Q 2017, up from the 2.4 percent rate in 3Q; supply growth remained steady at 1.9 percent.
Continued disruption from Hurricane Harvey led to Houston having the largest demand increase—31.1 percent.
National occupancy rose by 1.8 percent year-over-year.
ADR grew by 2.4 percent nationally in 4Q, up from 1.4 percent in 3Q.
RevPAR grew by 4.2 percent year-over-year in 4Q, the quickest pace of any quarter in 2017.
A 26.8 percent increase in occupancy and 11.1 percent increase in ADR gave Houston the largest increase in RevPAR (40.9 percent) in 4Q.
More than half of the 60 markets tracked by CBRE Hotels' Americas Research had supply gains of more than 2 percent in 4Q, about the same as in 3Q.
Twenty-four markets had declines in occupancy, approximately one-third fewer than in the previous quarter.