STR and Tourism Economics have downgraded their U.S. hotel forecast through 2026, citing weaker early 2024 performance and economic pressures. Revised projections show slower growth in ADR and RevPAR, with demand softening among cost-conscious travelers. While luxury hotels remain resilient, overall industry recovery is expected to be moderate amid high interest rates and cautious consumer

NEW YORK – STR and Tourism Economics made significant downward adjustments to the 2024-25 U.S. hotel forecast just released at the 46th Annual NYU International Hospitality Industry Investment Conference. The latest revision reflects lower-than-expected performance thus far in 2024 as well as lessened growth projections for the remainder of the year. For 2024, projected gains in average daily rate (ADR)