Historical Analysis: Rising Gas Prices Have Limited Impact on U.S. Hotel Demand

STR | March 10, 2022

Performance recovery is ramping up for U.S. hotels as the first quarter of 2022 nears a conclusion. However, that recovery is meeting potential headwinds from the war in Ukraine and subsequent further increases in gas prices. While the circumstances of 2022 are unique, historical data suggests that the latter of those two global issues will have a limited impact on U.S. hotel demand even as the cost for leisure and business travel increases further. Using data from the U.S. Energy Information Administration, gas prices have hit an all-time high on a nominal basis but remain lower than the July 2008 peak on an inflation-adjusted basis (real...