Dive Brief:
- In the fourth quarter of 2023, the top 20 U.S. markets saw 100% recovery in group business performance compared to the same period in 2019, according to Knowland and Amadeus’ Hospitality Group and Business Performance Index. Ten of those markets reached 110% or more of pre-pandemic levels.
- Las Vegas led all other markets in group business recovery, reaching 144.1% recovery compared to the same time in 2019, the report found. Phoenix (123.9%), San Diego (122.5%), Tampa (121.3%) and Boston (120.3%) followed as leaders of group business recovery during the quarter.
- Nationwide, heightened group business travel over the last year has bolstered hotel performance and development growth as well as profit gains in key markets, including several named in the report.
Dive Insight:
Corporate groups, including those traveling for conferences or conventions, continue to drive meetings and events volume across major U.S. markets. In Q4 2023, 63.9% of event days were corporate, compared to 58.4% at the same time in 2022, according to the report.
For leading market Las Vegas, which saw a big year for sporting and entertainment events, convention attendance also significantly increased in 2023. Overall, there were 5.99 million convention attendees in Las Vegas throughout the year, up 20% from 2022’s 4.99 million attendees, according to data from the Las Vegas Convention and Visitors Authority.
The city’s RevPAR and ADR also increased year over year, up 18% and 11.9%, respectively, LVCVA found.
According to Knowland and Amadeus, other markets that reached more than 100% group business recovery in Q4 include Miami, at 115.4%; San Antonio, Texas, at 112%; Dallas, at 109.9%; and New York City, at 109%.
In October, New York led other top markets in terms of gross operating profit per available room, while Dallas saw the highest total RevPAR growth of any market, according to CoStar data. The real estate information provider attributed both cities’ growth to a resurgence in group travel demand.
Dallas, particularly, has seen a boom in corporate relocations since the start of the pandemic, which has contributed to increased group business travel to the city, local hospitality experts previously told Hotel Dive. And this visitation is driving hotel performance gains and record-breaking hotel construction in the city.
Earlier this month, Knowland CEO Jeff Bzdawka told Hotel Dive that 2024 could be a banner year for the meetings industry, especially as “corporate meetings are a stabilizing force for hotel revenue, significantly outperforming other segments.”
