Skip to content
Search

Latest Stories

CBRE: Lodging demand back to 2019 levels by 2023

Better than expected first quarter growth led to the more optimistic forecast

CBRE: Lodging demand back to 2019 levels by 2023

THE FUTURE IS looking brighter for the U.S. hospitality industry, according to the latest forecast from CBRE Hotels Research. The research agency now predicts U.S. lodging demand will return to pre-pandemic levels by the fourth quarter of 2023.

Signs that the economy is recovering and indications that the COVID-19 pandemic is dissipating (except for the recent spread of the Delta variant) during the first quarter of the year are the basis of CBRE’s new forecast. Occupancy levels were continuing to rise in July, according to STR.


New supply may offset gains in occupancy some, according to CBRE, because fewer development and conversion projects were side-lined than previously forecast. That will delay the recovery of occupancy until fourth quarter of 2025 while supply grows more during the 2020 – 2022 period than coming out of prior recessions and 2019 RevPAR levels will not return until the third quarter of 2024.

ADR for U.S. hotels will return to 2019 nominal levels by the first quarter of 2024, according to CBRE Hotels Research’s June 2021 edition of Hotel Horizons. Hoteliers are taking advantage of the current surge in travel interest maximize room rates in an effort to make up for a 22.5 percent ADR decline during 2020. CBRE projects a 4.3 percent increase in ADR for all of 2021, followed by an 11.4 percent rise in 2022.

“We are encouraged by the pace of demand growth so far in 2021, not just for hotels, but for air travel, rental cars and alternative forms of lodging, as well,” said Rachael Rothman, CBRE’s head of hotels research and data analytics. “Clearly there is a pent-up desire to get back on the road, especially for leisure travel. Anecdotally, we are seeing early signs of improvement in group travel, but the overall pace of the recovery in group travel and corporate travel is less certain at this point.”

An expected 2.1 percent supply increase for 2021 could dampen demand growth, the article said. Properties that closed in 2020 are reopening, but face delays in the delivery of furniture and equipment as well as labor shortages that pushed back some openings.

“Local market factors increasingly are influencing the projected performance of U.S. hotels,” Rothman said.  “In general, properties located in smaller, remote and resort markets suffered less and are poised to recover to pre-pandemic levels faster. On the other hand, the larger, urban, gateway markets that are more dependent on in-bound international visitors and group demand will lag in recovery.”

San Bernardino, California; Virginia Beach, Virginia; and Dayton, Jacksonville and St. Petersburg, Florida, are forecast to achieve a market average RevPAR at 80 percent or more of 2019 levels by the end of this year. Conversely, recovery for hotels in New York and San Francisco will be extended as they are expected to see RevPAR of less than 40 percent of their 2019 levels in 2021.

CBRE also recently forecast a rise in costs of operating hotel telecom systems while revenue generated by the systems shrink, and suggested strategies hotels can take to lower costs and increase revenue.

More for you

AAHOACON25 in New Orleans, featuring 500 exhibitors and 5,000 attendees at the Ernest N. Morial Convention Center

AAHOACON25 leads to lasting partnerships

AAHOACON25: A Milestone Event for Hospitality

THE 2025 AAHOA Convention & Trade Show is over, but the partnerships announced during the show will go on. The theme of AAHOACON25 was "New Ideas, New Connections, New Orleans," and more than 5,000 registered attendees filled the New Orleans Ernest N. Morial Convention Center for the conference.

AAHOACON25 also had nearly 500 exhibitors occupying 85,000 square feet of exhibit space, according to AAHOA. The event featured around 20 education sessions, a do-it-yourself product demo experience known as The Garage on the Trade Show Floor, keynote speakers, and networking events, including the Block Party at Fulton Street.

Keep ReadingShow less
Asian Hospitality unveils inaugural ‘Women of Color Power List’

Asian Hospitality unveils inaugural ‘Women of Color Power List’

Women of Color Power List 2025 Debuts at AAHOACON 2025

ASIAN MEDIA GROUP USA, publisher of Asian Hospitality magazine, launched the first-ever “Women of Color Power List 2025” at the 2025 AAHOA Convention & Trade Show in New Orleans, honoring 51 women reshaping the U.S. hospitality industry. The publication is the first to spotlight the achievements of women of color, recognizing their resilience, innovation, and leadership.

Asian Media Group Managing Editor Kalpesh Solanki, Executive Editor Shailesh Solanki, and Chief Operating Officer Aditya Solanki announced the list during the conference.

Keep ReadingShow less
AAHOALending.com લોન્ચ 2025

AAHOA, બ્રિજ AAHOALending.com લોન્ચ કરે છે

AAHOA અને બ્રિજે AAHOALending.com ને AAHOACON 2025 માં રજૂ કર્યું

AAHOA અને બ્રિજે AAHOALending.com લોન્ચ કર્યું, જે હોસ્પિટાલિટી પર કેન્દ્રિત ડિજિટલ ધિરાણ પ્લેટફોર્મ છે. તે AAHOA સભ્યોને 150 થી વધુ ધિરાણકર્તાઓની ઍક્સેસ પ્રદાન કરે છે, જેમાં વધુને વધુ લોકોને નિયમિતપણે ઉમેરવાની યોજના છે, આ પ્લેટફોર્મ વપરાશકર્તાઓને ધિરાણ વિકલ્પોની તુલના કરવાની, શ્રેષ્ઠ દરો અને સુરક્ષિત ભંડોળ શોધવાની મંજૂરી આપે છે.

કોફાઉન્ડર અને CEO રોહિત માથુરની આગેવાની હેઠળના બ્રિજને ક્લબ બ્લુ ઇન્ડસ્ટ્રી પાર્ટનર તરીકે નિયુક્ત કરવામાં આવ્યા છે, જે AAHOAના પ્રોગ્રામમાં સર્વોચ્ચ સ્તર છે, તેના 300 ભાગીદારોમાંથી માત્ર 12 જ લાયકાત ધરાવે છે, એમ બંનેએ સંયુક્ત નિવેદનમાં જણાવ્યું હતું.

Keep ReadingShow less
2025માં મંદીની સંભાવના 50 ટકા : HAMA સર્વે

2025માં મંદીની સંભાવના 50 ટકા : HAMA સર્વે

HAMA 2025 સર્વે: 49% મેનેજર્સ મંદીની આશંકા ધરાવે છે

હોસ્પિટાલિટી એસેટ મેનેજર્સ એસોસિએશનના સ્પ્રિંગ 2025 ઇન્ડસ્ટ્રી આઉટલુક સર્વેક્ષણમાં અંદાજે 49 ટકા ઉત્તરદાતાઓ 2025 માં અમેરિકામાં મંદીની અપેક્ષા રાખે છે, જે 2024ના પાનખર સર્વેક્ષણમાં 19 ટકાથી વધુ છે. ટોચની ત્રણ ચિંતાઓ માંગ, ટેરિફ અને DOGE કટ અને વેતનમાં વધારો વચ્ચેનો જોડાણ છે.

HAMA સર્વેક્ષણમાં જાણવા મળ્યું છે કે લગભગ 55 ટકા ઉત્તરદાતાઓએ તેમની વર્તમાન વ્યૂહરચનાના ભાગ રૂપે બ્રાન્ડ અથવા મેનેજમેન્ટ ફેરફારો કર્યા છે અથવા કરવાની યોજના બનાવી છે.

Keep ReadingShow less
AAHOA Bridge AAHOALending 2025

AAHOA, Bridge launch AAHOALending.com

AAHOA and Bridge Unveil AAHOALending.com at AAHOACON 2025

AAHOA AND BRIDGE launched AAHOALending.com, a digital lending platform focused on hospitality. It offers AAHOA members access to more than 150 lenders, with plans to add more regularly, while allowing users to compare financing options, find the best rates and secure funding.

Bridge, led by Cofounder and CEO Rohit Mathur, has been named a Club Blue Industry Partner, the highest level in AAHOA’s program, with only 12 of its 300 partners qualifying, the duo said in a joint statement.

Keep ReadingShow less