Dive Brief:
- The third quarter of 2024 proved strong for group business, with Cendyn and Amadeus’ Hospitality Group and Business Performance Index showing an overall health metric of 107.9% year on year, the highest rating in four quarters, the companies reported Wednesday.
- Of the top 25 markets included in the index, Houston, New Orleans and Chicago ranked the highest for overall health, at 120%, 118% and 114.8% year-on-year growth, respectively. All markets achieved over 100% in the index except for San Francisco.
- Increases in room nights and ADRs led to strong overall group performance in the quarter, and meetings will continue to be a growth opportunity for hotels in future quarters, according to the companies.
Dive Insight:
The third quarter’s group performance was buoyed by a 1% increase in room nights and a 5% increase in ADR, its eighth consecutive quarter of growth. Cendyn and Amadeus’ index combines the firms’ sales and hotel booking data to provide an aggregate view of hotel performance drivers.
According to the report, hotels “of all sizes” experienced growth due to the meetings and events industry, with the average attendee count remaining steady at 136 guests. On average, hotels used 3,766 square feet for events in the quarter, down slightly from 4,025 square feet in Q2.
The top industry for events in the quarter was national associations, followed by weddings; education; healthcare; and charities, nonprofits and social services.
Phoenix led the U.S. for meetings volume growth in October, according to Cendyn, which acquired Knowland for an undisclosed sum last month.
Group travel boosted RevPAR gains for several hotel companies in the third quarter, including Marriott International, Hyatt Hotels and IHG Hotels & Resorts. In Las Vegas, resort operators MGM Resorts International, Caesars Entertainment and Wynn Resorts said group business contributed to the market’s hotel performance in Q3 earnings calls.
Marriott CEO Anthony Capuno called group performance “really encouraging” in the company’s earnings call last month.
The San Francisco market, meanwhile, continues to lag behind its peers. Hotels in the city’s downtown have seen their value drop amid lessened demand and increased crime.
