According to CBRE’s U.S. Quarterly Real Estate Analysis, overall hotel occupancy fell 0.8 percent year over year in the third quarter of 2024. This reflected a 0.1 percent drop in demand and a 0.6 percent increase in supply.
A 0.6 percent increase in average daily rate was offset by the decline in occupancy, leading to a 0.2 percent decrease in revenue per available room.
While hotel demand fell in Q3, lodging alternatives such as short-term rentals and cruise lines continued to report strong demand, up 24 percent and 15 percent, respectively, compared with Q3 2019.
Occupancy rates for all location types remained below 2019 levels in Q3. Interstate, suburban and town locations were the closest to their 2019 levels at 97 percent, while urban and resort locations were at 93 percent and 95 percent, respectively.