FAST FIVE: US Tourism Bust: Summer Hotel Occupancy Saw Second-Largest Drop Since Recession
However, the data revealed that occupancy weakness was not only centered in Texas and Florida, but there were widespread slowdowns in the Midwest and East Coast cities such as Indianapolis, Charleston, Kansas City, and Washington, DC. CBRE said some hotels had declining traffic as average daily rates for these cities cratered year-over-year.
In a separate report, top US hotel groups reported weaker than expected 3Q 2018 US growth in revenue per available room (RevPAR), causing some concern that a domestic slowdown is imminent. Marriott International posted North American RevPAR growth of just 0.6% for 3Q 2018. By comparison, Marriott saw RevPAR grow 1.9% worldwide over the same period.
Hilton president and CEO Chris Nassetta said, “while one market is slowing — in this case, the US — all of our international markets continue to pick up.” That pick up, however, won't last long if China's economy indeed enter contraction as many expect it will.
The report indicated a “perfect storm” of factors is brewing that is currently suppressing international demand for travel to the US.
That, coupled with political uncertainty in Europe and rising trade tensions, is a bad-news recipe for inbound travel.”.