Number of Permanent Hotel Closures Returns to Normal

In a sharp deceleration from the closure count of the last three years, 387 U.S. hotels closed their doors in 2023. The first wave of closures during the pandemic caused 714 owners to cease operations; in 2022, the count stood at 699. Four years after the pandemic started, owners, lenders and operators are now in a much better position to judge a hotel's ongoing viability, and the number of project closures reflects the strong performance of the U.S. hotel industry.