Room Night Distribution Trends

by Branden T. White | Jun 30, 2022

The relative strength of leisure travel, combined with weakness in corporate and group travel, has led to shifts in the distribution of room night demand relative to pre-pandemic norms. The increased percentage of leisure travelers led to growth in reservations made through OTAs (Online Travel Agencies) and property direct bookings, while weakness in corporate and group business led to declines in the percentage of bookings made via group and GDS (Global Distribution System) channels. Business travel has been picking up, although group demand and international travel have been slower to return. As of Q1 2022, total room night demand for U.S. hotels was 89% of that achieved in Q1 2019. Additionally, year-to-date TSA passenger throughput has been holding steady near 90% of 2019 levels. Despite downward pressure on economic growth caused by record inflation, rising gas prices, and the substantial pull-back in the S&P 500 since January, the hotel recovery continues. Overall, group and business travel have improved significantly in recent quarters, resulting in Q1 2022 distribution ratios that are more in-line with pre-pandemic levels, as shown below.

U.S. Hotels Q1 2022 - All

Screen Shot 2022-06-30 at 1.56.11 PM

Room Nights by Source of Business

Screen Shot 2022-06-30 at 1.57.52 PM

For more information, contact: 

Branden T. White, MRICS, ASA
Vice President
+1 520 323 5175 (office)

CBRE Hotels Advisory is a specialized group within CBRE providing capital markets, consulting, investment sales, research, and valuation services to companies across the hotel sector. CBRE Hotels is comprised of more than 385 dedicated hospitality professionals located in 60 offices across the globe.