Skip to content

Search

Latest Stories

PwC: ADR likely to drive RevPAR in 2022 close to 2019 levels

Occupancy expected to reach 61.7 percent next year, ADR to rise 5.9 percent

PwC: ADR likely to drive RevPAR in 2022 close to 2019 levels

OCCUPANCY AND ADR in U.S. hotels will continue to grow in 2022, with a year-over-year rebound in RevPAR of 14.4 percent, around 93 percent of pre-pandemic levels, according to PwC. Meanwhile, ADR in the third and fourth quarter of 2022 is expected to surpass comparable 2019 levels.

The near-term outlook for the U.S. lodging sector by PwC, titled U.S. Hospitality Directions: November 2021 has said that the vast majority of temporarily-closed hotels will have reopened and demand growth, particularly from individual business travelers and groups, will improve if infection rates continue to drop in 2022.


According to PwC report, continued demand recovery will result in an occupancy of 61.7 percent next year and ADR will see an increase of 5.9 percent. The consultancy firm anticipates RevPAR up by 14.4 percent in 2022.

"If vaccinations increase and infection rates continue to drop as we close out 2021 and start the new year, demand from individual business travelers and groups will improve, with average daily room rates in the third quarter and fourth quarter of 2022 expected to surpass comparable 2019 levels,” said Warren Marr, managing director, U.S. hospitality & leisure, PwC.

PwC hinted that lodging’s recovery is expected to remain uneven with slowing growth in vaccinations and waning consumer optimism during December. Just 59 percent of the U.S. population was fully vaccinated as of Nov. 16.

"Due to strong demand during the summer, we expect annual occupancy for U.S. hotels this year to remain consistent, increasing to 57.1 percent. We now expect ADR to increase 19.6 percent in 2021, with resultant RevPAR up 55.1 percent, approximately 82 percent of pre-pandemic levels," the report said.

According to the report, upper upscale hotels in the U.S. will show the most increase in RevPAR at 40.3 percent in 2022 followed by luxury segment at 23.7 percent. The upscale sector will also show an increase in RevPAR at 21.1 percent next year. Only the economy segment will be down 3.8 percent in 2022.

The latest report from STR has said that U.S. hotel performance moved closer to pre-pandemic levels during the third week of November.

More for you

AHLA members meet with U.S. lawmakers to discuss key hospitality legislation impacting hotel owners and workers

AHLA shares priorities with lawmakers

AHLA Members Unite on Capitol Hill to Advance Hospitality Legislation

MORE THAN 250 American Hotel & Lodging Association members met with lawmakers in the U.S. Senate and House to discuss legislative priorities critical to the hospitality industry. They raised concerns about tax and trade policies impacting hotel operating costs and travel demand amid ongoing budget reconciliation and tax negotiations.

Members also discussed expanding and upskilling the hospitality workforce through measures such as adjusting the H-2B visa cap and protecting the franchise model, which supports more than half of all U.S. hotels and 2.8 million jobs, the association said in a statement.

Keep ReadingShow less
CBRE: US Hotel RevPAR to Grow 1.3 Percent in 2025

CBRE: RevPAR to grow 1.3 percent in 2025

U.S. HOTEL REVPAR is expected to grow 1.3 percent in 2025, supported by urban markets from group and business travel and increased demand for drive-to and regional leisure destinations, according to CBRE. Occupancy is forecast to rise 14 basis points and ADR 1.2 percent year-over-year.

This represents slower growth than CBRE’s February forecast, which projected 2 percent RevPAR growth based on a 21-basis-point increase in occupancy and a 1.6 percent rise in ADR, the commercial real estate and investment firm said.

Keep ReadingShow less
Palette Hotels to Transform DoubleTree by Hilton in Washington, PA

Palette to manage Washington, PA, DoubleTree

Palette’s Expertise in Hospitality Management

SUNRISE GOLD HOSPITALITY recently selected Palette Hotels to manage its 140-room DoubleTree by Hilton Washington Meadow Lands Casino Area in Washington, Pennsylvania. Palette will oversee renovations, including Hilton Connected Rooms technology upgrades, new signage, landscaping, building systems and updates to the lobby, guestrooms, bathrooms, meeting spaces, restaurant, bar and lounge.

Sunrise Gold Hospitality is led by owner Ramesh Pandya, and Palette Hotels by Founder and CEO Richard Lou.

Keep ReadingShow less