CBRE Upgrades U.S. Hotel Forecast, Sees RevPAR Recovery by Mid-2023

per available room will reach 2019 levels by the second half of 2023 rather than in 2024, as previously forecast.

The company noted, however, that the new omicron variant and ongoing concerns about the pandemic have continued to hold back business, convention and large-group travel. Still, CBRE projects these categories to accelerate in the latter half of 2022. Further, despite the possibility of renewed travel restrictions, the company anticipates higher occupancy levels from an increase in inbound international and business travel in 2022.

Room rate will continue to lead the hotel recovery, according to CBRE. “Typically, when recovering from downturns, [average daily rate] growth lags occupancy gains,” said CBRE head of hotel research and data analytics Rachael Rothman in a statement. “The trend has reversed this cycle, owing to strong leisure demand and a nascent recovery in corporate and group demand.”

In addition to an earlier RevPAR recovery, CBRE projects that ADR will reach 2019 levels by the end of 2022. The company’s outlook for occupancy has it still lagging slightly behind its 2019 level through 2025.

Donna M. Airoldi  www.businesstravelnews.com