In May 2024, the average daily rate (ADR) for U.S. hotel rooms reached $158.45, marking the second-highest month on record. Recent data indicates a noticeable shift in travel behavior among U.S. hotel guests in 2024, characterized by fewer trips but longer stays. On average, travelers are now taking nine trips per year, down from ten in 2023, but the average length of stay has increased from 3.36 days to 3.43 days. This change is largely driven by the continued impact of elevated travel costs post-pandemic, leading guests to consolidate their travel plans. As a result, hotels are under pressure to deliver consistently high-quality experiences over these longer durations. This trend is particularly challenging for limited-service hotels, which have seen a decline in guest satisfaction due to their inability to meet the elevated expectations that come with longer stays. On the other hand, luxury and upper upscale segments are benefiting from this trend, with guest satisfaction remaining strong or even improving. These hotels are capitalizing on the opportunity to offer more comprehensive services and experiences, ensuring that guests perceive value for the higher rates they are paying. For limited-service hotels, the focus needs to be on enhancing room cleanliness, property maintenance, and guest interaction to close the satisfaction gap and remain competitive in this evolving market landscape.
