NEW YORK, June 3 - Lower-income Americans dialed back their travel spending in April as reduced savings, higher credit card delinquencies, and inflation weighed on household budgets, according to data from commercial real estate analytics firm CoStar.
Overall U.S. hotel room demand in April fell 0.5% due to declining demand for midscale and economy hotels, CoStar said in a presentation at the NYU International Hospitality Industry Investment Conference on Monday. U.S. room demand in April fell about 2.7% and 3.9% for mid-scale and economy hotels, respectively. Revenue per available room, an important industry metric, fell about 1.7% and 3%, respectively.
CoStar downgraded its previous 2024 forecasts for the industry, now expecting average daily room rates will rise 2.1% this year compared to its previous forecast of 3.1%. In 2023, room rates rose 4.3%.
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