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| Rachael Rothman |
Dallas, TX, May 31, 2022 – CBRE is raising its forecasts of hotel performance for 2022 and beyond, based on Q1 2022 strength, continued slowing of construction activity, higher inflation and continued optimism about employment and economic growth.
CBRE’s forecasts call for a full recovery in average daily rate (ADR) in 2022 and in demand and revenue per available room (RevPAR) in 2023.
Despite
headwinds from the Omicron variant, Q1 RevPAR
reached $72.20, up 61 percent from year earlier. RevPAR growth was driven by a
39 percent increase in ADR)and a 16 percent increase in occupancy.
“To date, there has been no sign that the more than 50 percent increase in gas prices and the stock market’s hovering near bear-market territory are dampening hotel demand,” said Rachael Rothman, CBRE’s Head of Hotel Research & Data Analytics.
“However, in the past, a steep decline in the S&P 500 and high gas prices have often caused RevPAR growth to decline, which raises the specter of a pullback in RevPAR later this year.
“Despite this possibility, our outlook
remains that the market will continue to recover.”
The May 2022 edition of Hotel Horizons for the U.S. lodging industry, 65 major markets, the six hotel chain scales and six location types can be purchased by visiting: https://pip.cbrehotels.com.
Contacts:
Chris Daly
Kris
Hudson
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