The top 14 hotel markets have fully recovered group revenue in comparison to the same time in 2019 according to the Group and Business Performance Index from Knowland and Amadeus Hospitality for the second quarter of this year.
The index, which combines event data from Knowland with hotel booking data from Amadeus to give both individual and aggregate views of the key drivers of hotel performance, was first launched in June and is updated on a quarterly basis.
The recovered group markets (with percent of 2019 revenue) include:
- Miami – 115%
- Tampa – 114%
- Orlando – 113%
- Phoenix – 112%
- Dallas – 108%
- Houston – 107%
- San Antonio – 105%
- Denver – 105%
- San Diego – 104%
- New Orleans – 103%
- Washington, DC – 101%
- St. Louis – 101%
- Los Angeles – 101%
- Austin – 100%
Key insights from the Q2 2023 index are as follows:
- Group business leads recovery: Group business continues to lead in recovery as Q2 2023 is at 102% of Q2 2019 levels, driven by a nearly 11% increase in ADR, while room nights are lagging 8% behind Q2 2019 levels.
- Meetings and events provide a stabilizing revenue base: Supported by increased rates, both actualized group room revenue and event activity increased slightly in Q2 2023 compared to Q1 2023. This continues an overall trend of increases in group business since early 2022, providing a strong basis for optimism in terms of forward-looking occupancy and revenue in H2 2023 and H1 2024 as hotels build on the foundation of group business booked further in advance while identifying opportunities to capture shorter-term transient demand.
- Corporate meetings significantly outperform other segments: Corporate meetings and events accounted for 62% of events held during the second quarter with healthcare, technology and training/education as the top-volume industry segments.