u.s. lodging
May 2024 Hotel Industry Outlook: Bright Spots and Challenges
Anne R. Lloyd-Jones | May 31, 2024
By Anne R. Lloyd-Jones Mixed messages abound these days, comprising some bright spots, some not so bright spots, and some challenges. With no coherent theme, the greatest challenge may be developing a forecast for the industry as a whole. But we are undaunted and herewith present our current expectations for the U.S. lodging industry. The recent successive increases in GDP, lower inflation levels, and continued strong job growth paint a positive picture of the U.S. economy, but ongoing international conflicts, the pending election, and uneven economic metrics have resulted in a lack of overall clarity. The specter of a recession remains...
Hotel Industry Outlook 2024: Moving Steadily Forward
Anne R. Lloyd-Jones | January 25, 2024
By Anne R. Lloyd-Jones, McKenna Luke The U.S. lodging industry ended 2023 at 63.0% occupancy, a slight increase over 2022’s 62.7%. Strong growth in the first quarter was offset by modest declines in the latter three quarters, as outbound international travel increased and inbound international travel remained muted, particularly from APAC sources. The group segment continued to post strong year-over-year gains; business travel also improved, albeit at a more modest pace. Overall, ADR increased by 4.3% in 2023, supported by strong growth in the first quarter of the year. ADR growth faltered in the summer months, attributable to lower leis...
CBRE Hotels Research Forecasts Full Demand Recovery by Late 2022
CBRE Group, Inc. | May 21, 2020
Revenue per Available Room Recovery Expected to Push Into 2023 Atlanta – May 21, 2020 – After suffering the greatest performance declines in the history of the U.S. lodging industry during 2020, the nation’s hotels will benefit from what is expected to be a relatively rapid economic turnaround in 2021 and 2022, according to the June 2020 edition of CBRE’s Hotel Horizons forecast report. CBRE foresees demand for U.S. lodging accommodations returning to precrisis levels in the third quarter of 2022. However, a lag in ADR (average daily rate) growth will stall the recovery in RevPAR (revenue per available room) until 2023. “Th...
U.S. Lodging Industry Is Healthy, But Growth Is Slow Through 2021
CBRE Group, Inc. | November 20, 2019
Atlanta – November 20, 2019 – CBRE Hotels Research forecasts that revenue growth will continue to diminish, but the U.S. lodging industry will remain strong through the next two years. As outlined in the December 2019 edition of Hotel Horizons®, U.S. occupancy levels will dip slightly, but remain above 65.5 percent through 2021, 300 basis points greater than the STR long-run average. Concurrently, rooms revenue per available room (RevPAR) is forecast to increase at less than 1 percent per year during the same timeframe. “Throughout the recovery from the Great Recession, we have seen the U.S. lodging industry deviate from economi...
U.S. Lodging Performance Fell Short of Budget in 2017
Robert Mandelbaum | October 22, 2018
by: Robert Mandelbaum In 2017, the actual achieved levels of occupancy, average daily rate (ADR), total revenue and profits for U.S. hotels were less than their respective budgeted amounts. After a five-year period (2011 through 2015) of extremely accurate budget projections, this marks the second consecutive year that owners and operators failed to meet their operating goals. As general managers, controllers, and directors of sales begin the process of preparing their budgets and marketing plans for 2019, we present the results of our most recent look at the budgeting accuracy of U.S. hotel operators. From CBRE Hotel's Americas Researc...
PwC Hospitality Directions US: May 2018
PwC US | May 29, 2018
Following a better than expected first quarter, lodging metrics continue to remain positive. First quarter results yielded stronger than expected increases in demand for many hotel companies, as well as slightly stronger rate growth, driven primarily by an increase in commercial transient travelers. Year-over-year for the first quarter, RevPAR increased across the transient segment nationally, led by rate growth. As hotels continue to feel the pressure from rising wages, insurance costs and other expenses, the components of RevPAR growth become more important. With occupancy levels at record levels, an expected uptick in commercial ...
U.S. Lodging Fundamentals Portend Improved RevPAR Growth
Fitch | May 16, 2018
Fitch Ratings-New York/Chicago-16 May 2018: U.S. lodging RevPAR growth will be in the 2% - 4% range in 2018, according to Fitch Ratings. The agency raised its prior outlook of 0% - 2% growth due to better than expected corporate transient lodging demand in the context of continued, strong leisure demand and moderate industry supply growth. Higher-end resort hotels will outperform but elevated supply in key markets such as New York City will weigh on urban and upscale hotels. The sector credit outlook is stable, with most issuers reporting healthy operating fundamentals and managing leverage within stated financial policy targets. U.S. l...
Supply Growth to Peak in 2018, Impacting Changes in Local Market Occupancy and ADR
CBRE Group, Inc. | February 21, 2018
Atlanta – February 21, 2018 – The supply of new hotel rooms entering the U.S. lodging markets will peak in 2018. Based on the recently released March 2018 edition of Hotel Horizons®, CBRE Hotels' Americas Research is forecasting the net addition of approximately 101,000 rooms to the U.S. lodging inventory during 2018, an increase of 2.0 percent over 2017 average annual daily supply. This is the largest number of new rooms to enter the market since the 130,000 rooms that came on line in 2009. "The national changes in supply are less than what we observed during the latter year cycles of the 1980s, 1990s and 2000s, so the ...
