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U.S. hospitality health metric hits four-quarter high in Q3

All top 25 markets, except San Francisco, had index scores above 100 percent

U.S. hospitality health metric hits four-quarter high in Q3
Vishnu Rageev R
By Vishnu Rageev RNov 27, 2024

U.S. HOSPITALITY BUSINESSES reported a year-over-year health metric of 107.9 percent for the third quarter of 2024, according to the Hospitality Group and Business Performance Index by Cendyn and Amadeus. This marks the highest index rating in four quarters.

The top 10 city rankings are:

  1. Houston:           120 percent
  2. New Orleans:     118 percent
  3. Chicago:           114.8 percent
  4. New York City:  112.1 percent
  5. Washington DC: 111.1 percent
  6. Philadelphia:      110.7 percent
  7. Boston:            110.3 percent
  8. Detroit:           110.1 percent
  9. Seattle:            109.7 percent
  10. Denver:        108.1 percent

All top 25 markets, except San Francisco, achieved index scores above 100 percent. Houston and Philadelphia led in GDS performance, while the top group growth markets were New Orleans with 152.6 percent, Chicago with 123.6 percent, and Houston with 115.3 percent.

The index integrates event data from Cendyn’s Sales Intelligence platform, formerly Knowland, with hotel booking data from Amadeus’ Demand360 travel solution, reflecting performance across group, corporate negotiated, global distribution system and events.

Insights from the index include:

  • Overall health: The third quarter reached 107.9 percent, the highest index rating in four quarters and the second consecutive quarter above 100 percent.
  • Group performance: Reached 106.1 percent, driven by a 1 percent increase in room nights and a 5 percent rise in ADR, marking eight consecutive quarters of growth.
  • Indirect channels: GDS grew to 113.5 percent from 112 percent in the second quarter, with an 11 percent rise in room nights and a 2.4 percent increase in ADR.
  • Negotiated performance: Growth reached 101.6 percent, with a 2.2 percent decline in room nights offset by a 3.9 percent rise in ADR.
  • Events performance: Events were the second-highest segment after GDS, with volume at 110.2 percent compared to the same period last year.
  • Meetings: Hotels saw growth from meetings and events, with an average of 136 attendees per event. Average space usage shifted slightly from 4,025 to 3,766 square feet. Key markets included Las Vegas at 124.1 percent, Detroit at 123.5 percent, and Atlanta at 123 percent.

In October, Phoenix led the top 25 markets with 19.7 percent year-over-year growth, according to Cendyn’s Sales Intelligence platform. This was its first time at the top this year, driven by events in national associations, technology, healthcare, and financial services.

amadeusu.s. hotelscities in the u.s.business performancehospitality businesstop 25 marketscendynu.s. hospitality industrythird quarterhospitality group and business performance index

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