▶ Nationwide Hotel Prices Up 20%–30%
▶ Southern California, including LA, also ranks high
"It's hard to find hotels under $200 at vacation spots." A U.S. traveler planning to visit New York this month expressed frustration at being unable to find decent accommodations for less than $300 per night, including taxes and fees. This is due to the recent surge in hotel prices across the country.
According to the Wall Street Journal (WSJ) on the 27th, there are signs of hotel price hikes nationwide. In an August survey by global real estate market company CoStar Group, 20% of hotels in the top 25 U.S. markets charged an average daily rate of $200. Before the COVID-19 pandemic in 2019, only 13% of hotels charged this much.
CoStar Group data shows that the average nightly rate in Boston and Miami so far this year has been $227, and in San Diego, it's averaged $217. In New York, the rate reached $276. Southern California, including LA, is also nearing the $200 mark.
Especially from 2021 to 2022, hotels across the country raised their prices simultaneously. This survey found that hotel rates in Orlando, Florida, jumped by 36% compared to 2019, and Phoenix, Arizona, saw a 35% increase. Jan Freitag, head of hotel analytics at CoStar, said, "Hotels are under pressure to manage rising costs as inflation and price hikes don’t align."
Of course, not all hotels have raised their prices. Some budget hotels have slightly reduced rates compared to last year to attract customers. However, high-end hotels have shown price increases. Steven Carvell, a professor at Cornell University, noted, "Many hotel operators are avoiding discounts to keep their rooms full."