Hotel Horizons® March 2019 Edition Finds U.S. Lodging Outlook Good Through 2020; Economic “Blip” Causes Slowdown in 2021 Before Returning to Positive Growth for 2022

R. Mark Woodworth

Atlanta, GA –– A favorable economic outlook will lead to continued growth in U.S. hotel revenues and profits through 2020. 

 However, an economic slowdown in 2021 will cause a short-lived softening of lodging industry fundamentals that year. 

According to the March 2019 edition of Hotel Horizons^®, CBRE Hotels Americas Research is forecasting U.S. hotel rooms revenue per available room (RevPAR) to increase by 2.5 percent in 2019 and an additional 2.0 percent in 2020. 

 However, for 2021, CBRE is projecting a slight decline in RevPAR of 0.6 percent.  Fortunately for hoteliers, that immediately is followed by 1.4 percent RevPAR growth for 2022.

“In the near-term, the fundamentals of supply, demand and pricing in the U.S. lodging industry are very similar to what we have observed the past few years,” said R. Mark Woodworth, senior managing director of CBRE Hotels Americas Research. 

 “For the most part, the supply of hotel rooms entering the market will be absorbed by newly generated demand buoyed by a healthy economy.  Further, while the nominal rate of change may be disappointing, we are projecting average daily rate (ADR) growth above the pace of inflation for 2019 and 2020.”

in 2019 and 1.2 percent in 2020, followed by a decline of 0.1 percent in 2021.

“I would characterize the economic slowdown in 2021 as a blip (an unexpected, minor and typically temporary deviation from a general trend), not a dip (to sink, drop or slope downward). 

"Further, the performance of the U.S. lodging industry in 2021 should be viewed as a slowdown, not a recession,” Woodworth said.  “In fact, we see the U.S. hotel market bouncing back strong in 2022 with a 2.5 percent increase in demand.”

Contact:

Chris Daly

Daly Gray Public Relations

703 435 6293

chris@dalygray.com