SHERIDAN, WYOMING – Feb. 14, 2025 – Cendyn and Amadeus have announced the results of their Hospitality Group and Business Performance Index for Q4 2024. The index reveals a significant milestone, achieving the highest overall health metric in four quarters, reaching 108.2 percent year-over-year. This positive trend underscores the continued recovery and growth within the hospitality sector.
Top Performing Markets
Several key markets demonstrated exceptional performance in Q4 2024, contributing significantly to the overall positive index. The top-performing markets for overall health include:
- Tampa (121.4 percent)
- Houston (120.6 percent)
- Miami (116.8 percent)
- New York City (112.0 percent)
- Chicago (111.6 percent)
- Phoenix (110.4 percent)
- Detroit (109.8 percent)
- St. Louis (109.6 percent)
- San Diego (109.6 percent)
- New Orleans (108.3 percent)
Group Performance Highlights
In addition to the overall health index, the Q4 2024 report highlights specific growth markets for group performance. These markets, which experienced notable increases in group business, include:
- Houston (124.0 percent)
- Tampa (119.8 percent)
- New Orleans (114.1 percent)
- Chicago (114.0 percent)
- Detroit (113.8 percent)
Index Methodology
The Hospitality Group and Business Performance Index is a collaborative effort between Cendyn and Amadeus. It leverages event data from Knowland by Cendyn and hotel booking data from Amadeus’ Demand360 business intelligence solution. This combined data provides a comprehensive and aggregated view of the key drivers influencing hotel performance across various segments, including group, corporate negotiated, global distribution system (GDS), and events. The index also offers valuable filters for event market segments and booking industries, enabling deeper insights into specific market dynamics.
Key Insights from the Q4 2024 Index
The Q4 2024 index reveals several important trends within the hospitality industry:
Overall Health Index at Peak: "The aggregated Index reflects performance for all segments—group, corporate negotiated, GDS, and events—and shows Q4 2024 achieved 108.2 percent compared to 2023. This is the highest overall index rating in four quarters, and the third consecutive quarter over 100 percent." This sustained growth indicates strong positive momentum in the industry.
Group Segment Performance: "The group Index was at 101.0 percent due to a 0.7 percent decrease in room nights and a 1.7 percent increase in average daily rate (ADR) with nine consecutive quarters of growth." While room nights saw a slight dip, the substantial increase in ADR underscores the pricing power hotels are experiencing in the group segment.
GDS Channel Growth: "Overall, GDS grew again this quarter with 112.3 percent due to a 9.8 percent increase in room nights and a 2.3 percent increase in ADR." The continued growth in GDS bookings highlights the channel's importance in driving hotel revenue.
Negotiated Rates Show Strength: "The negotiated Index score was 104.2 percent due to a 0.6 percent decrease in room nights and a 4.8 percent increase in ADR." Similar to the group segment, the negotiated segment saw a significant increase in ADR, offsetting the slight decrease in room nights.
Events Segment Leads the Way: "Events were the highest segment with improvement over the last quarter. Volume was 115.2 percent of the same period last year." The strong performance of the events segment demonstrates its vital role in driving hotel occupancy and revenue.
Meetings and Events as Growth Drivers: "Hotels of all sizes in Q4 experienced growth due to the meetings and events industry. The average attendee size held steady at 127 guests. The average space used was consistent with Q3 moving slightly from 3,766 to 3,410 square feet." This data emphasizes the significant contribution of meetings and events to the overall health of the hospitality industry. The consistent attendee size and space usage suggest a return to pre-pandemic patterns for meetings and events.
The Q4 2024 Hospitality Group and Business Performance Index from Cendyn and Amadeus paints a picture of a thriving hospitality sector. The record-high overall health index, coupled with strong performance across multiple segments, points to a positive outlook for the industry. The data underscores the importance of strategic revenue management and the continued recovery of key business segments like group, GDS, and events.
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