U.S. hotel rooms revenues to increase through 2020 to 2022, Hotel Horizons’ study

 Thursday, March 7, 2019

As per Hotel Horizons March 2019 Edition, CBRE Hotels Americas Research, U.S. hotel rooms’ revenues and profits will show positive growth in 2022 after crossing the hurdle of economic ‘Blip’ in 2021 that will be responsible for slowdown. The positive growth will ride on the cocktails of favorable economic outlook.

 

 

 

U.S. hotel rooms’ revenue per available room (RevPAR) will increase by 2.5 per cent in 2019 and 2.0 per cent in 2020. CBRE is projecting a slight decline in RevPAR of 0.6 per cent. But, 2022 will again see the rise of RevPAR by 1.4 per cent.

 

 

 

The economic slowdown in 2021 will be a blip and not a dip as per R. Mark Woodworth, senior managing director of CBRE Hotels Americas Research. Blip is an unexpected, minor and typically temporary deviation from a general trend. He expects that the U.S. hotel market will bounce back strong in 2022 with a 2.5 percent increase in demand. The fundamentals of supply, demand and pricing in the U.S. lodging industry are very similar to what we have observed the past few years.

 

 

A healthy economy will absorb the new the supply of U.S. hotel rooms. Woodworth added, “Despite the first indications of a potential softening in U.S. lodging performance, the industry still is forecast to operate at exceedingly high occupancy levels and profit margins. The growth story may not be as strong as hoteliers would prefer, but I would hardly classify hotel sector performance as poor”.

 

 

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