U.S. Hotel Industry Reports Growth Ahead of January 2025

The U.S. hotel industry reported significant growth for the week ending January 18, 2025, with occupancy rates rising by 6.7% to 55.8%, and Revenue per Available Room (RevPAR) increasing by 17.4% to $86.93. San Francisco experienced the largest gains in occupancy, Average Daily Rate (ADR), and RevPAR, driven by events like the J.P. Morgan Healthcare Conference. Meanwhile, Hong Kong's hotel sector is also poised for a strong year, with tourist arrivals up by a third in 2024, reaching 44.5 million, and a projected increase in the sector's economic contribution from 2.6% in 2023 to 5% by 2029. The city's venue upgrades and new events are expected to attract more business travelers, while notable hotel transactions signal robust investor confidence. However, both markets could face challenges from broader economic issues, including geopolitical tensions and economic struggles in China. Overall, the hospitality sectors in both the U.S. and Hong Kong are optimistic about the upcoming year, fueled by tourism recovery and significant events.