Executive Summary

U.S.

After RevPAR rose to a record high in 2023, CBRE expects the U.S. to see another year of improvement in 2024. RevPAR growth is forecast to reach about 3% year-over-year, driven by the ongoing recovery in inbound international travel; strong performance in the meetings and group events segment; and continued demand from leisure travelers. Urban locations with leisure appeal and higher-priced hotels should outperform, but traditional hotel demand and pricing will likely be tempered by competition from alternative sources like cruise lines, short-term rentals, and glamping.

Caribbean

The Caribbean has made a remarkable recovery over the last 24-36 months and appears poised for continued growth, backed by a continued influx of tourists from the U.S. and limited new supply. While some risks remain, particularly the impact of climate change and hurricanes, the region’s resilience during the pandemic should provide a foundation for continued strong performance over the course of 2024 and beyond.

Mexico

The Mexican Ministry of Tourism estimates that in 2024, international tourist arrivals to the country could increase by up to 5.4% and foreign expenditures by up to 0.3% compared to 2023. Beach resorts, such as the Riviera Maya, Los Cabos, and Cancun, can expect to see above-average hotel occupancy in 2024, supported by new developments and even with the completion of new hotel rooms this year.

Europe

Europe's hotel and tourism sector is poised to gain further momentum in 2024, with domestic and short-haul leisure travel remaining the primary drivers of hotel demand. Additional tailwinds will come from a rise in international long-haul leisure travel from Asia. However, following strong growth in RevPAR fueled by inflation and surging demand in 2023, momentum is likely to decelerate to a high single-digit rate, indicating a return to more normalized levels of demand growth.

Asia Pacific

Although airline capacity in Asia Pacific is yet to fully recover to pre-pandemic levels, CBRE forecasts that total international tourism arrivals should reach 2019 levels by the end of this year. While ADRs are expected to normalize in most markets, occupancy growth in well-managed assets should drive revenue growth. Operators that demonstrate flexibility and capitalize on the upswing in tourism will be the main beneficiaries, particularly those in North Asian markets, such as Japan and Korea.

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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 2021 revenue). The company has more than 105,000 employees (excluding 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.