by
Jamie Lane, Bram Gallagher | Jul 10, 2020
The U.S. Hotel industry has poised a remarkable rebound since mid-April. Our latest Hotel ViewPoint report provides a summary of our current outlook and how the industry is tracking relative to our forecasts that were released in May.
• The U.S. hotel industry has seen 10 consecutive weeks of occupancy gains, but a recent uptick in COVID-19 cases threatens to derail the progress.
• Demand has outpaced near-term expectations for six weeks but only pulled forward the recovery by a month and doesn’t change our long-term outlook for a full recovery in hotel occupancy.
• Our forecasts show that RevPAR will decline 52% this year, and occupancies will average just 41% - well below last year’s record of 66%.
• Given the expected quick rebound in economic growth and historic resiliency of travel demand, we forecast a strong hotel revenue recovery in 2021 and 2022, and that RevPAR could recover to pre-recession levels by mid-2023.
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