Rachael Rothman
Dallas, TX –– Average daily rate (ADR) gains and a 35.1% year-over-year increase in hotel occupancy in Q3 showed demand for U.S. hotel stays endured in the face of the Delta variant.
Continued improvement in domestic travel
and the rollback of many international travel restrictions have led CBRE to
revise its forecast significantly upward in the near- and medium-term.
Revenue per available room (RevPAR) is now
forecast to reach 2019 nominal levels by the second half of 2023, rather than
in 2024, as previously forecasted.
“Typically, when recovering from
downturns, ADR growth lags occupancy gains,” said Rachael
Rothman, CBRE’s Head of Hotel Research & Data Analytics.
“The trend has reversed this cycle, owing
to strong leisure demand and a nascent recovery in corporate and group demand.”
Revenue management focusing on rate rather
than occupancy, as well as continued staffing difficulties, may prevent
occupancy from reaching the highs of the last cycle; however, an ADR-led
rebound contributes to faster recovery of profits.
CONTACT:
Chris Daly
President
DG Public Relations
(703) 864-5553
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