As the hotel industry navigates periods of lower demand from travelers, many hoteliers are optimistic about the prospects to boost revenues and capture more business and group travelers.
After a full RevPAR recovery in 2022, recessionary concerns and the capital markets are causing headwinds for the industry. What can hoteliers expect in 2023 and beyond? This article presents our latest forecast and insights.
There is plenty of reason for hotel companies to be optimistic in the first quarter of 2023, Wall Street analysts said, but there's also plenty of reason to worry about the rest of the year.
For many in the hospitality industry, 2022 has been a year of recovery that has exceeded all expectations. Leisure travel has continued to exceed expectations, group travel has started to rebound in more markets, and many are continuing to experience record level ADR growth. Unfortunately, not everything is rosy, and effects of the pandemic are still being felt in labor shortages, especially at the unit level of hotels.
Recovery Remains Strong Despite Supply Growth, Especially in Upscale Lifestyle Hotels
Speaking at the 2022 Lodging Conference, executives with major hotel brands said issues like muted business travel and difficulty completing hotel construction will give way to a bright future, eventually.
Hoteliers are more than happy with the pace of leisure travel and signs of life from group and corporate travelers so far this summer, but finding the staff to service that demand remains a struggle.
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For the remainder of 2015, the U.S. hotel industry is predicted to report a 1.4-percent increase in occupancy to 65.3 percent, a 5.2-percent rise in average daily rate to US$120.93 and a 6.6-percent increase in revenue per available room to US$78.99. During that same period, demand growth (+2.6 percent) is expected to outweigh supply growth (+1.3 percent).