Tue Oct 08 16:54:30 UTC 2024: ## US Hotel Growth Expected to Improve in Second Half of 2024 Despite Lower Overall Forecast

**Global Report** – CBRE has revised its forecast for US RevPAR growth in 2024 to 1.2%, down from its previous estimate of 2.0%. However, the second half of the year is expected to see a significant improvement, with growth projected at 2.0% compared to just 0.5% in the first half.

This optimistic outlook for the second half is driven by factors such as:

* **Election-related events:** Increased demand expected from political gatherings.
* **Easier prior-year comparisons:** Growth will be compared to a weaker 2023 period.
* **More international travelers:** Anticipated rise in inbound tourism.
* **Potential interest rate cuts:** Stimulating economic activity and travel.
* **Uptick in group and business travel:** Increased demand from corporate events.

**Urban and airport hotels** are expected to perform well, while **resort locations** are likely to continue underperforming as leisure travel trends normalize.

**Positive Outlooks for Other Regions:**

* **Northern Latin America:** Strong growth anticipated in Colombia, Costa Rica, and Mexico, driven by economic improvements and government initiatives.
* **Europe:** Continued expansion, albeit at a slower pace than previous years. Strong growth expected in key gateway cities, with luxury and resort locations outperforming.
* **Middle East:** Positive outlook with improved hotel performance in the GCC region, fueled by tourism-related megaprojects and regulatory changes in the UAE.
* **Asia Pacific:** Strong growth in H1 2024, despite staffing and aircraft shortages.

**Challenges remain:**

* **Staffing shortages** continue to impact the hospitality industry globally.
* **Aircraft shortages** are impacting air travel and tourism.
* **Softening US demand** is expected to affect RevPAR growth in Europe.

Overall, the global hotel and tourism industry remains resilient and poised for continued growth in 2024, although some regional variations are expected.

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