The global hotel industry has marked a record year in 2024, achieving significant milestones despite prevailing economic challenges and geopolitical uncertainties.

The average daily rate (ADR) for larger hotels has surpassed $165, representing a new peak, while occupancy rates have risen to an all-time high of 70.2 percent, according to the latest industry analysis published by Moore Hungary, a consulting and auditing firm.

Moore Hungary's analysis draws on a representative sample from the performance data of four major hotel chains: Marriott, Hilton, InterContinental Hotel Group, and Hyatt, covering nearly 26,000 hotels across 109 countries.

This quarterly analysis provides insight into current trends and performances within the international hotel market.

The notable occupancy rate of 70.2 percent signifies a breakthrough, especially when considering that the ADR increased from $162.4 the previous year to $165.3, marking a 1.8 percent rise.

The robust performance is attributed to sustained demand from international leisure travelers, alongside a notable increase in business group travel, especially for large corporate events, which is providing strong support for hotel demand.

Regionally, the analysis reveals varied trends:

- In North America, particularly the United States, growth in the hotel market has moderated, especially within the leisure segment.

This slowdown is attributed to the rapid recovery post-COVID-19, which has made it challenging to achieve further growth from an already high baseline.

- Conversely, the Asia-Pacific region and the Middle East have experienced strong demand growth.

- In Europe, city tourism has been buoyed by major events, including the Olympics, while some markets are beginning to see slight corrections from previous record years.

In Hungary, significant results have emerged in 2024, with almost 18 million domestic and international tourists visiting accommodations across all categories, reflecting an 11 percent increase from the prior year.

These tourists contributed approximately 44 million guest nights, equating to a 6 percent growth year-over-year, according to data from the National Tourism Data Provider Centre.

Budapest has seen a remarkable surge in visitor numbers, particularly among international tourists, with nearly 6 million inbound guests, constituting a nearly 25 percent increase compared to the previous year.

The expansion of Budapest's hotel clientele has been significantly supported by Budapest Airport, which welcomed and dispatched 17.6 million passengers in 2024, marking a 19.5 percent increase from 2023. Current trends suggest that this growth trajectory is set to continue.

Looking ahead to 2025, the major hotel chains anticipate further expansion, projecting a 3 percent increase in revenue per available room (RevPAR) and an estimated net increase in room supply of around 6 percent.

This indicates a continuing competitive landscape across various tiers of hotel offerings.

Industry experts highlight a notable shift among price-sensitive travelers toward higher demand for quality standards and an enhanced experience across all segments.

The advantage of branded hotels is attributed to adherence to consistent standards, quality assurance, access to global reservation systems, and effective loyalty program operations.

The growing market for branded hotels in Hungary is expected to continue its upward trajectory.