Total Hotel Revenues Fell for the First Time, Further Pressuring Profits
CBRE US Hotels State of the Union May 2024 Edition
CBRE US Hotels State of the Union May 2024 Edition
Key Takeaways:
Economy
Q1 economic growth was slower than expected. 1Q GDP came in at 1.6%, below CBRE’s 2.3% estimate. We expect disappointing 1Q growth will result in a downward revision to CBRE’s full-year 2024 real GDP growth forecast of 2.3%. Inflation is proving stickier than expected, resulting in a 70-bps increase in CBRE’s 4Q Fed Funds rate from 4.4% to 5.1%.
Higher leverage and the burndown of COVID savings put…