ARLINGTON, Virginia—Knowland and Amadeus presented metrics from the companies’ Hospitality Group and Business Performance Index. For the second quarter of 2024, the Index shows overall health of 105.5 percent year-over-year (YOY.) This is the first time the overall Index has exceeded 100 percent, reflecting continued industry health across all reported indices. In addition, 22 of the top 25 U.S. markets have achieved 100 percent or more in overall performance compared to the same time in 2023.
- Las Vegas, Nevada | 117.9 percent
- Seattle, Washington | 117.6 percent
- Nashville, Tennesee | 114.2 percent
- Detroit, Michigan | 110.2 percent
- Houston, Texas | 108.9 percent
- Miami, Florida | 108.2 percent
- Washington, D.C. | 108.0 percent
- Philadelphia, Pennsylvania | 107.4 percent
- Tampa, Florida | 107.0 percent
- New York City, New York | 106.6 percent
- Dallas, Texas | 106.2 percent
- San Francisco, California | 105.9 percent
- Boston, Massachusetts | 105.6 percent
- Phoenix, Arizona | 104.5 percent
- Denver, Colorado | 104.4 percent
- Minneapolis, Minnesota | 104.3 percent
- San Diego, California | 103.9 percent
- Chicago, Illinois | 103.8 percent
- Atlanta, Georgia | 103.7 percent
- St. Louis, Missouri | 103.6 percent
- San Antonio, Texas | 102.9 percent
- Austin, Texas | 102.7 percent
While these were the top growth markets overall, 21 of the top 25 markets achieved 100 percent or more growth in the group segment for Q2 2024 compared to the same period last year. This reflects continued growth for seven consecutive quarters. The top group growth markets were Las Vegas, Nevada (125.7 percent); Detroit, Michigan (122.2 percent); and Seattle, Washington (117.8 percent).
The Index combines event data from the Knowland platform with hotel booking data from Amadeus’ Demand360 business intelligence solution to provide aggregate views of the drivers of hotel performance. The aggregated index reflects performance or “health” for all segments—group, corporate negotiated, global distribution system (GDS), and events. It offers filters for event market segments and booking industries, empowering hoteliers, destinations, and convention and visitor bureaus to adapt strategies effectively.
Key insights from the Index are as follows:
- Strong group growth with Northeast and Midwest regions leading the charge. The Group Index has achieved seven consecutive quarters of year-over-year growth, reaching 108 percent. This includes 103.4 percent of last year’s room nights and a 4.4 percent increase in the average daily rate. The Northeast and Midwest regions were standout performers, experiencing double-digit growth in group nights.
- Performance of indirect distribution rallies beyond 2023 levels, leading all segments in growth. The GDS Index scored 112 percent overall, with room night production at 109.1 percent last year and a 2.4 percent increase in average daily rate (ADR). The most significant growth in GDS room nights booked occurred in the Northeastern region, with New Jersey, Maine, and Rhode Island experiencing more than 25 percent YOY growth.
- Negotiated performance remains stable compared to last year. The Negotiated Index score was 102 percent with 98.5 percent of the 2023 room nights and a 3.8 percent increase in ADR. Eighteen of the top 25 markets achieved 100 percent or more versus the same period last year.
- Event volume is steady as meetings get bigger. Events remained consistent in 2024 compared to 2023. With the reduction of one-day meetings, some of those events have been moved to multi-day events that may be held less frequently. Growth continues in the top 25 markets, which continue to attract events with their versatility and range of experiences. However, the higher ADR for these markets ($229/night in Q2) may have caused a share of events to transition to non-top 25 markets, which averaged $185/night in Q2.
- Meetings continue to provide stability for hotels after the 2023 boom year. The average attendee size held steady at 145 guests. Nashville rose to 131.6 percent, Detroit was 120.3 percent, and Miami was 113.7 percent. Eleven of the top 25 markets achieved 100 percent or more for Q2 2024 versus the same period last year. The average space used was consistent with Q1 moving slightly from 3,981 to 4,025 square feet.
- The normalization of business segments is evident. The comprehensive health index has demonstrated improvement, rising from 99.9 percent in Q1 2024 to 105.5 in Q2 2024, indicating consistency and robustness across all sectors as organic growth gains prominence.
