Are hotels affected by recession?

Are hotels affected by recession? Recessions generally lead to a reduction in travel and tourism, and past economic downturns have inevitably resulted in many negative impacts to the lodging and tourism industries.

What is the hotel industry forecast for 2023?

CBRE's revised forecast projects 2023 RevPAR will be up 4.6 percent year over year to $96.64, which is down $1.25 from its previous forecast, issued in May. CBRE's softened RevPAR projections are partially attributed to decreased occupancy expectations and a decline in demand, according to the company.

What industry hurt the most during a recession?

How is the hotel industry doing 2023?

The U.S. hotel industry has continued to experience growth in 2023, building upon the momentum gained in 2022. According to data provided by Smith Travel Research (STR), the sector experienced pronounced performance in April 2023 compared to earlier months.

What is the hotel outlook for 2024?

For 2024, the RevPAR growth projection was also lowered 0.5ppts on a 0.5ppt downgrade in occupancy. Average daily rate (ADR) was upgraded 0.1ppts for 2023 but kept flat for 2024. “We brought down our growth projections with the industry in a period of normalization,” said Amanda Hite, STR President.

Are hotels a hedge against inflation?

Inflation affects hotel returns through pricing, substitution effects and interest rates. Most hotels' returns are not sensitive to low-to-moderate inflation. Luxury hotels have the most promise as inflation hedges. Dollar strengthening appears to help luxury returns as well.

Are hotels profitable in 2023?

We are lowering our 2023 RevPAR growth forecast from 6.0% to 4.6% owing to a weaker-than-expected Q2 2023. Early indicators of property distress are increasing. Profit declines are contributing to an uptick in delinquencies, from 5.4% to 5.9%. This could be a precursor to increases in special servicing down the road.

Why are hotels so expensive right now 2023?

High Demand for Hotel Rooms The high demand for hotel rooms plays a big part in why hotels are so expensive right now. When lots of people want to stay in hotels, the hotels become full quickly. This is called high occupancy. With more people wanting to book rooms, hotel owners can charge more money for them.