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US Hotel and Tourism Industry Forecast 2024

The US hotel industry faces headwinds in 2024, with factors like competition from alternative lodging and an economic slowdown impacting RevPAR growth. However, a potential surge in international travel brings opportunities. CBRE forecasts a modest 3% RevPAR growth in 2024, driven by occupancy gains and a slight increase in ADR.

While overall investment activity is expected to be muted, certain asset types offer more appeal. Upper-midscale chains are poised for resilience due to consumer trading down. Investors should also consider trophy assets, newer select-service hotels, and properties catering to group travel in markets with a favorable demand mix.