Long-Run (1946-2020) Effects of Inflation on Hotel Operating Performance | Part 2

by Jack Corgel, Ph.D., CBRE Consultant | Aug 09, 2022

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Key Takeaways

From 1946 to 1982, when inflation was high, hotel profits and average daily rate (ADR) were both positively related to inflation and statistically significant.
From 1982 to 2020, when inflation was low, the relationship between inflation and ADR remained strong, however hotel profits did not keep pace with inflation.
If history is a guide, then investors should expect hotel incomes to keep pace with inflation during this current period of high and seemingly persistent inflation.