Thanksgiving Shift and Mixed Signals: US Hotel Industry Performance in Late November 2024

A Week of Contrasts in the Hotel Industry

The Thanksgiving calendar shift brought notable challenges for the US hotel industry during the week of November 24–30, 2024. The week’s performance metrics revealed overall declines in occupancy, average daily rate (ADR), and revenue per available room (RevPAR), compared to the same period in 2023. However, pockets of resilience emerged in select markets, highlighting diverging regional trends.

National Performance Metrics (YoY Changes):

• Occupancy: 50.0% (-7.7%)
• Average Daily Rate (ADR): $141.09 (-3.0%)
• Revenue Per Available Room (RevPAR): $70.59 (-10.5%)

Regional Highlights: Winners and Losers

Tampa Shines Amid Broad Declines

Tampa emerged as a bright spot, reporting the largest year-over-year gains in both occupancy (+13.2%, reaching 69.0%) and RevPAR (+22.6%, at $106.16). These increases were likely driven by local events and a surge in leisure travel, as warm-weather destinations became more appealing during the holiday week.

Oahu’s ADR Soars

Oahu recorded the strongest ADR growth among the Top 25 Markets, climbing +12.8% to an impressive $286.39. This surge highlights Oahu’s appeal as a premium destination, bolstered by robust demand for luxury stays over the Thanksgiving holiday.

Las Vegas Struggles

On the opposite end of the spectrum, Las Vegas experienced the sharpest decline in RevPAR (-56.0%, down to $86.03), reflecting weakened demand in a city heavily reliant on conferences and large-scale events. The holiday week’s lower business travel volumes likely compounded the dip in occupancy and ADR.

Broader Market Trends

Despite a few standout markets, 19 of the Top 25 US hotel markets reported year-over-year declines in RevPAR. This trend underscores the impact of a softer travel week following Thanksgiving celebrations, compounded by a shift in calendar timing that affected comparisons to 2023.

Leisure Markets Lead Resilience

Leisure-driven markets like Tampa and Oahu saw positive performance, buoyed by domestic travel trends favoring coastal and tropical destinations. These gains point to continued traveler interest in vacation escapes during holiday weeks.

Urban and Business Hubs Underperform

Major urban centers, reliant on business and group travel, faced headwinds as the post-Thanksgiving lull reduced demand. The absence of large conferences or events in key markets like Las Vegas exacerbated these challenges.

Outlook: Navigating Seasonal Fluctuations

The Thanksgiving calendar shift serves as a reminder of the hotel industry’s sensitivity to holiday timing and market-specific dynamics. While the overall declines highlight ongoing challenges, the resilience in markets like Tampa and Oahu points to opportunities for targeted strategies in leisure-focused destinations.

Looking ahead, the industry may expect a rebound in December as holiday travel accelerates. Urban centers may see a recovery in demand with year-end celebrations and business wrap-ups, but operators must remain vigilant about pricing strategies to optimize ADR and RevPAR during fluctuating periods.

As the US hotel sector closes out 2024, adaptability and localized insights will be key to navigating short-term disruptions and capitalizing on emerging travel trends.