Lodging Analytics Research & Consulting again lowered its projection for 2024 U.S. hotel performance after "softer first quarter results than expected" but noted corporate transient travel demand remained solid, according to a report the hospitality consulting firm released Tuesday.
LARC now projects 2024 U.S. hotel occupancy will decline 0.8 percent from 2023 levels, as compared to the 0.5 percent decline it predicted in its most recent report in March. The company now forecasts 2024 U.S. average to increase 2.6 percent year over year, compared with the 3.1 percent it projected in March, and revenue per available room to increase 1.8 percent, compared to 2.6 percent in its earlier forecast.
LARC president Ryan Meliker in the report pointed to a weaker than expected first quarter as well as signs that consumer spending is declining, despite economic growth, hindering leisure growth.
However, "in 2024, lodging industry growth will be fueled by corporate transient, group, and inbound foreign travel while domestic leisure demand continues to wane," Meliker noted. "Corporate transient demand trends are modestly positive, supported by growing corporate profits, stock prices and limited (very limited in some markets) improvements in office utilization."
Hotel analytics firm STR this week also lowered its 2024 U.S. hotel forecast.
RELATED: LARC's March forecast