US has lowest growth rate since 2020; Canada shines

NATIONAL REPORT – The U.S. hotel industry in 2024 reported record-high ADR and RevPAR, but the country’s growth rate was its lowest since the declines of 2020, according to CoStar year-end data.

2024 (percentage change from 2023):

• Occupancy: 63.0% (flat)
• ADR: $158.67 (+1.7%)
• RevPAR: $99.94 (+1.8%)

Among the Top 25 Markets, New York City experienced the highest occupancy level (+3.3% to 84.3%).

Markets with the lowest occupancy for the year included St. Louis (58.1%), Minneapolis (58.7%) and Detroit (59.1%).

The Top 25 Markets showed higher occupancy and ADR than all other markets. Markets outside the Top 25 saw a 0.5% decline in occupancy.

Records in Canada

Meanwhile, Canada’s hotel ADR and RevPAR) were the highest for any year on record, according to CoStar dada. 

2024 (percentage change from 2023):

• Occupancy: 65.7% (+0.1%)
• ADR: CAD208.71 (+4.3%)
• RevPAR: CAD137.17 (+4.4%) 

“While ADR and RevPAR hit all-time highs, the country’s occupancy level was its highest since 2018,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. “RevPAR growth was strongest during the fourth quarter, bolstered by Taylor Swift shows in Toronto and Vancouver, but the country’s annual growth rate slowed in comparison with 2023. The softening in growth reflects weaker economic conditions as well as strong comparables from the year prior.

“Room rates once again outpaced inflation, while supply and demand were flat year over year. Increases in transient demand and weekday results signaled continued strength in business travel, counterbalancing weakness in group demand and flat performance on weekends.”

Among the provinces and territories, Manitoba recorded the highest occupancy level (69.0%), which was 4.1% below 2023. 

Among the major markets, Vancouver saw the highest occupancy (78.2%), down 0.4% over 2023. 

The lowest occupancy among provinces was reported in Prince Edward Island (54.7%), down 6.9% against 2023. 

At the market level, the lowest occupancy was reported in Edmonton (+3.4% to 58.5%).