In the final quarter of 2023, the top 20 U.S. markets witnessed a remarkable 100% recovery in group business performance compared to the same period in 2019, according to the Hospitality Group and Business Performance Index by Knowland and Amadeus. Notably, ten of these markets surged past 110% of pre-pandemic levels.
Leading this recovery was Las Vegas, which outshone all other markets with a 144.1% recovery compared to 2019. Following closely were Phoenix (123.9%), San Diego (122.5%), Tampa (121.3%), and Boston (120.3%), each demonstrating strong recovery in group business during the quarter.
The resurgence in group business travel nationwide has not only boosted hotel performance and development but also led to profit gains in key markets. Corporate groups, including those attending conferences or conventions, continue to be the driving force behind meetings and events volume across major U.S. markets. In Q4 2023, 63.9% of event days were corporate, up from 58.4% in the same period in 2022.
Las Vegas, in particular, experienced a significant uptick in convention attendance in 2023, with 5.99 million attendees throughout the year, a 20% increase from 2022, according to data from the Las Vegas Convention and Visitors Authority. The city also saw an 18% increase in Revenue Per Available Room (RevPAR) and an 11.9% increase in Average Daily Rate (ADR), according to LVCVA.
Other markets that exceeded 100% group business recovery in Q4 include Miami (115.4%), San Antonio (112%), Dallas (109.9%), and New York City (109%), according to Knowland and Amadeus.
In October, New York led in terms of gross operating profit per available room, while Dallas witnessed the highest total RevPAR growth among all markets, according to CoStar data. Both cities’ growth was attributed to a resurgence in group travel demand.
Dallas, in particular, has experienced a surge in corporate relocations since the start of the pandemic, leading to increased group business travel and hotel performance gains. Experts predict a strong year ahead for the meetings industry in 2024, with corporate meetings expected to be a stabilizing force for hotel revenue, outperforming other segments, according to Knowland CEO Jeff Bzdawka.
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