Hotel Demand & Supply Growth On Par at 2%

  • Hotel demand grew 2.0% nationally in Q4 2019, about 0.2% more than in Q2 on a year-over-year basis. Supply grew by 2.1%.
  • Denver, boosted by several new hotel developments and rebounding from a 2018 season affected by wildfires, had the largest year-over-year demand increase (9.4%). Large gains also occurred in Austin (8.0%) and Houston (7.2%).
  • National occupancy decreased 0.1% year-over-year to 61.8%.
  • ADR grew by 0.7% year-over-year in Q4. RevPAR also grew by 0.7%, a slower pace than the 2.4% of a year ago but 0.1% higher than the previous quarter.
  • 38 of the 60 markets tracked by CBRE Hotels’ Americas Research had supply gains of more than 2% in Q4, five more than in Q3.
  • 22 markets had declines in occupancy in Q4, eight fewer than in Q3.
  • Albuquerque had the highest RevPAR gain (8.7%), driven by a nearly even split of occupancy and ADR growth. San Francisco (7.4%) and Oahu (7.1%) also had high RevPAR gains.
  • Of the top 10 markets for RevPAR growth, half had increases driven primarily by ADR growth and half by increasing occupancy.