 |
| Rachael Rothman |
CBRE’s tempered outlook extends into 2022, given the likelihood
that corporate travel budgets will remain constrained next year.
Earlier this year, the lodging outlook had
been brighter due to strong leisure demand boosting summer occupancy levels
beyond expectations at U.S. hotels.
But the emergence of the Delta variant
sapped momentum from more lucrative business travel, giving rise to a concerning
“second-derivative” market condition in which the recovery continues but at a
slowing pace.
 |
| Bram Gallagher |
“The Delta variant and increasing number of COVID infections led to delays in ‘return to office’ plans at many firms and coincided with the start of the 2022 travel-budgeting season,” said Rachael Rothman, CBRE’s Head of Hotel Research & Data Analytics.
“Unfortunately, for business centric
hotels, the rebound in business travel expected in September of 2021 is now
delayed and will likely have a ripple effect into 2022’s corporate travel
budgets.”
 |
| Orlando International Airport |
CBRE forecasts that U.S. hotels will achieve a
2021 annual occupancy level of 54.0%, along with an average daily rate (ADR) of
$112.85.
“In general, Sunbelt
cities and drive-to leisure destinations are expected to perform the best,
while group-oriented hotels, northern markets, and global gateway cities
reliant on inbound international travel are projected to lag in performance,”
said Bram Gallagher Ph.D.,
Senior Hotel Economist with CBRE Hotels Research.
“The
pace of recovery for business and group demand is top of mind for most
hoteliers.”
CBRE is forecasting an occupancy gain of 8.0% in 2022, plus a 7.1% boost to ADR. The net result is a 15.6% forecast increase in RevPAR for the year.
The September 2021 editions of Hotel Horizons® for the U.S. lodging industry and 65 major markets may be purchased by visiting: https://pip.cbrehotels.com.
Contact:
Chris
Daly
President
DG Public Relations
(703) 864-5553
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