by Lacey Pfalz
Last updated: 1:10 PM ET, Mon January 29, 2024
Hotels will pay record high wages and generate record tax revenue this year, according to the American Hotel & Lodging Associations (AHLA) 2024 State of the Hotel Industry report, which puts forth predictions for the year ahead.?
Hotels in the nation are expected to pay an increase of $5 billion in wages this year from 2023, with a record of over $123 billion. Thats $11 billion more than the pre-pandemic total, of $102 billion.?
Additionally, hotels are expected to generate a record level of state and local tax revenue. Predictions expect them to generate nearly $54.4 billion this year, up from $52.4 billion last year and $43.4 billion in 2019.?
Federal tax revenue is also expected to reach a record level this year, with predictions placing the annual total at $29 billion, up from $27.3 in 2023 and $24.3 in 2019.
Normal hotel guest spending on lodging, transportation, food and beverage, retail and other expenses are expected to grow 5 percent from 2023 and 24 percent from 2019, reaching $756.8 billion.?
Despite the record revenue, the hotel industry will still see a 225,000 deficit from the 2.37 million people employed in the industry in 2019, leading to some hotel staffing issues in certain destinations. ?
The hotel industry will also likely not reach the 2019 occupancy rate of 65.8 percent. Last year, average hotel occupancy was 62.9, and this year, its expected to reach nearly 63.6 percent, just under the pre-pandemic level.?
2023 was a significant comeback year for hoteliers, and our outlook for 2024 shows the industry is poised to build on that success, said AHLA President & CEO Chip Rogers. The expectation of higher occupancy rates and record amounts of wages and tax revenue point to a strong future. But hoteliers face continued challenges, including a nationwide labor shortage, persistent inflation, high interest rates, and a federal regulatory agenda thats making it harder for hoteliers to do business. AHLA will continue to advocate for hoteliers at all levels of government to solve these problems and keep our industry on an upward path.
The report was created in collaboration with Oxford Economics and AHLA Premier Partners STR, Avendra, Ecolab, Encore, JLL, Oracle and Towne Park.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
