- U.S. resort conversion exercise stays beneath the long-term common, with 1,103 resorts changing to this point in 2024, barely up from final 12 months however beneath the 20-year common of 1,424.
- The biggest conversion hole to the long-term common is amongst resorts changing from a model to unbiased and vice versa, suggesting that the pattern of fewer unbiased resorts changing to a model could be changing into the brand new regular.
In 2024, U.S. resort conversion exercise has remained beneath the 20-year common. Though conversions have elevated barely from 1,000 resorts final 12 months to 1,103 this 12 months, that is nonetheless beneath the long-term common of 1,424. The most important shifts had been seen in properties switching from branded to unbiased and people altering to a different father or mother firm’s model.
The biggest conversion hole is amongst resorts changing from a model to unbiased and vice versa, with a median of 250 fewer resorts per 12 months making that change over the previous three years. This implies that the pattern of fewer unbiased resorts changing to a model could be the brand new regular.
In 2024, 23% of resorts modified manufacturers for the primary time since their opening, with 1 / 4 of these shifting from a model to an unbiased. Of the closed resorts, 307 have reopened this 12 months, most of which retained their authentic model.
Whereas new resort openings have elevated to 564, the best since 2021, they continue to be beneath the long-term common of 797. Lodge closures, predominantly amongst unbiased properties, stay excessive at 742, which remains to be beneath the height in 2022 and 2005.
Regardless of larger rates of interest and development prices holding again new development, the anticipated enhance in resort conversions, particularly from unbiased inventory, has not materialized. This might be attributable to unsuitable unbiased resorts for conversion, reminiscent of age or location.
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