The hotel industry is in healthy shape in the early months of 2024. Performance has returned to normalised levels, and the time of consistent fluctuations is well in the past. Hoteliers can plan around a much more stable operating environment, but finding opportunities for gains requires a renewed focus with demand segments shifting toward historical norms.

The 2024 economic outlook suggests that interest rates have peaked, with expectations for a decrease once stickier service-based inflation moderates. A decrease would alleviate pressures on discretionary spending, leading to a marginal rise in leisure travel spending as a share of consumption.

Our yearly partnership with the Independent Hotel Show is a tremendous opportunity to talk through these issues and showcase the available data insights for elevating the industry’s performance. We are pleased to share a report, which provides a sampling of our unrivalled benchmarking solution. Previewed briefly below, the full report will be issued to conference attendees following the event with insights spanning top-line performance, profitability, forward bookings and forecast.

Report Preview

After moving past Omicron comparables in the first quarter of 2023, the Benelux region made a steady move toward normalised levels of performance growth. Trend lines were similar across independent and branded properties, with growth persisting in double-figures through summer then dipping to the lowest points during Q4. Independent properties obtained more growth through average daily rate (ADR), whereas branded hotels gained more through occupancy.

Hotels in major cities that are more dependent on business travel and group demand were further behind in the recovery timeline last year. That left more room for growth in 2023, which explains healthy year-over-year occupancy growth among branded properties in Amsterdam throughout the year.

Looking ahead, the forecast remains softest for German markets, as a slow return to corporate weekday demand limits growth prospects. Long-term, demand expectations remain firmly anchored across Europe, with demand and RevPAR expected to rise annually through 2028.

The full report will be presented at IHA24 on the Hotel Business Stage. Secure your ticket and book your space for 'Hotel Inspection: A performance Update By STR' here.