Smith Travel Research

Smith Travel Research provides invaluable insights through data benchmarking, analytics, and marketplace trends that empower the global hospitality sector.

Lingering economic concerns have continued to weigh on traveler’s minds as more than one-third of middle-income consumers say that cost impacts their willingness to plan a trip. According to Hoteldive.com, U.S. hotels saw weaker than expected Q3 performance as occupancy rates for all location types in Q3 remained below 2019 levels. 

National Forecast: As of November 19, STR and Tourism Economics adjusted their projections for U.S. hotel growth in 2024, refining the outlook to reflect a +1.5% increase in average daily rate (ADR) and a +1.4% increase in revenue per available room (RevPAR). Occupancy is also projected at to be lower at 62.9%,compared to the previous forecast. Similarly, the 2025 forecast highlights is expected to decrease from original numbers, with ADR and RevPAR expected to grow at +1.6% and +1.8%. respectively. You can find their press release here.

Destination Forecast: Hotel Horizon's quarterly forecast for Coachella Valley as of November 2024 projects a year-over-year decline of 4.0% by the end of 2024 (63% vs. 65.6% in 2023). Additionally, ADR is expected to decline by 0.8% year-over-year ($204.82 vs. 206.54 in 2023). Looking forward to 2025, occupancy is expected to grow 1.3% with a 1.9% increase in ADR, reflecting RevPAR growth of 3.1%. 

Data below is for Greater Palm Springs for September/October.

September 2024
Occupancy was at 50.3%, reflecting a 7.3% decrease from 54.2% in 2023. ADR was down 5.3% at $161.33 ($170.43 in 2023), resulting in a RevPAR of $81.11, down 12.2% from $92.40 in 2023. 

October 2024
Occupancy was at 58.8%, a 5% decrease from 61.9% in 2023. ADR for October was down 13.1% at $196.38 compared to $225.97 in 2023, resulting in a RevPAR of $115.54 , which is a 17.4% decrease from $139.88 in 2023. 

YTD 2024 Trends
YTD Occupancy is at 59.7%, a 4.5% decrease from 62.5% in 2023. ADR was down 2.7% at $217.63 ($223.67 in 2023), resulting in a RevPAR of $129.86, down 7.1% from $139.74 in 2023.  

Greater Palm Springs Occupancy

The numbers below reflect data for November 2024. An arrow in the upper right-hand corner of a box below indicates additional information is available. Click to open.