As we bid farewell to 2023, it’s time to reflect on a year that posed challenges and triumphs for the hotel industry. Despite a few icy patches in the financial landscape, some players emerged as clear winners in the global hospitality arena.

The year maintained a steady performance for hotels, with an occupancy rate settling near 63%, a slight dip from the 66% recorded in 2019. Average Daily Rate (ADR) saw a modest uptick of just under 5%, reaching approximately $155 USD.

Notably, group room nights experienced robust growth, compensating for a slight pullback in domestic leisure travel.

However, the transactions market experienced a frosty spell. The federal funds rate, starting at less than 1% in early 2022, soared to 5.25% to 5.5% by late summer 2023.

Coupled with early-year bank failures, this sent shockwaves through the investment community, resulting in a 35% decline in transaction volume compared to 2022.

Global Perspectives

United States

In the U.S., hotel fundamentals softened in Q2 2023 as more Americans ventured overseas and inbound international travel saw only a modest recovery.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Despite this, we anticipate modest Revenue per Available Room (RevPAR) growth in late 2023 and early 2024, fuelled by improved business and group travel, along with an uptick in international visitors.


The Caribbean maintained positive momentum, experiencing strong gains in visitor arrivals. Projections for 2024 include the groundbreaking of new hotel projects, reflecting investors’ healthy appetite for Caribbean hotels.


Europe’s hotel sector is on the path to recovery, driven by pent-up consumer demand. Higher ADR and RevPAR were observed across most markets in H1 2023, especially in the luxury and upscale segments.

However, hotel investment remained subdued due to costlier debt finance and modest yield expansion.


While domestic tourism rebounded, international travellers were slower to return to Asia-Pacific. Chinese tourism played a pivotal role, contributing to an increase in Hotel ADR in most markets on a USD basis.

Outstanding performers

Several hotel and resort companies stood out in 2023, with remarkable revenue growth:

  1. Marriott International Inc.
    1. Revenue for the twelve months ending September 30, 2023, was $23.541bn, a 22% YoY increase.
    1. Marriott’s resilience and diverse portfolio across the U.S., Canada, and international markets contributed to its success.
  2. MGM Resorts International
    1. Achieving $15.38bn in revenue in the twelve months ending September 30, 2023, marked a 22.15% YoY growth.
    1. MGM’s integration of resort and gambling services proved beneficial in a changing market.
  3. Caesars Entertainment Corp
    1. Revenue for the twelve months ending September 30, 2023, reached $11.524bn, an 8.81% YoY increase.
    1. Caesars’ strategic expansion and entertainment offerings attracted a growing consumer base.
  4. Hilton Worldwide Holdings
    1. A revenue of $10.070bn in the twelve months ending September 30, 2023, marked a 23.33% YoY increase.
    1. Hilton’s global footprint and diverse brand portfolio contributed to its financial success.
  5. Hyatt Hotels Corp
    1. Revenue for the twelve months ending September 30, 2023, was $6.595bn, a notable 22.61% YoY increase.
    1. Hyatt’s focus on customer experience and expansion played a pivotal role in its growth.
  6. Las Vegas Sands Corp
    1. With a revenue of $8.574bn in the twelve months ending September 30, 2023, Las Vegas Sands witnessed a remarkable 114.3% YoY increase.
    1. Diversification in entertainment offerings contributed to its resurgence.
  7. Galaxy Entertainment Group
    1. In Q3 2023, the group posted Net Revenue of $9.7bn, showing an outstanding 374% YoY increase.
    1. Galaxy’s focus on the Asian market and diversified revenue streams positioned it as a standout performer.

Outlook for 2024

As we look ahead to 2024, a slow start is anticipated, with gradual acceleration leading to a robust finish.

The US may avoid a recession, and RevPAR is expected to increase, albeit at a slower rate than in 2023. The possibility of a rate cut by the Fed in the summer could fuel additional transaction activity in the hotel industry and other real estate sectors.

The key to success will be adaptability and strategic positioning in a dynamic and evolving market.