Hotel Currents: Economics and Hotel Financial Performance

by Jack Corgel, Ph.D., CBRE Consultant | Oct 27, 2022

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Key Takeaways

Over the last 18 months, domestic leisure travel has been well above historical trends as guests were not afraid to travel and had accumulated considerable savings during the pandemic.

Economic conditions have changed. Inflation is running ‘hot’ for many non-discretionary (i.e., necessities) items, which limits discretionary income for travel and lodging.

Household earnings are not growing fast enough to offset Inflation, further limiting discretionary income.

Price for airline tickets, gas for automobiles, and hotel room rates have risen at rates well exceeding CPI growth.