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.