Executive Summary
- The overall hotel occupancy rate increased by 0.4% year-over-year in Q1 as demand growth of 1.0% outpaced supply growth of 0.6%.
- A 1.9% increase in average daily rate (ADR), coupled with the slight increase in occupancy, led to a 2.2% increase in revenue per available room (RevPAR). Increased business travel in Q1 due to Easter falling in Q2 this year was partially offset by an 11.6% decline in inbound international travelers in March.
- Demand for lodging alternatives grew at a faster rate than that for traditional hotels. Short-term rentals and cruise lines saw demand growth of 45% and 9%, respectively, from Q1 2019 levels.
- Hotel wage growth matched the national average of 4% in Q1. Job openings per hotel fell nearly 9% to 15 from 17.
- Occupancy rates for all location types continued to lag those of Q1 2019; however, except for resorts, they all had increased occupancy year-over-year in Q1. Urban locations were at 92% of 2019 levels, while interstate locations were the closest to pre-pandemic levels at 99.5%.
- The Super Bowl boosted RevPAR growth in New Orleans, while Tampa’s RevPAR was buoyed by hurricane relief efforts. After Columbus, Washington, D.C. and West Palm Beach rounded out the top five RevPAR growth markets in Q1 2025, likely due to demand driven by the presidential inauguration.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
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