Though some forecasters expect moderation next year, corporate hotel rates continue to rise. There are several reasons, notably inflation, cost pressures and lagging corporate recovery relative to other segments. While several hotel executives in recent weeks said all three challenges were easing, they also described a "normalized" environment featuring elevated pricing levels. Buyers should expect tough negotiations for preferred 2024 rates.
"Occupancy rates have been high, but so have labor, energy and food and beverage costs," according to an August report from CWT and GBTA. "Meanwhile, hotel construction remains down from its pre-pandemic peak, creating supply . . .