What is the outlook for the hotel industry in 2023?
What is the outlook for the hotel industry in 2023? Strong Hotel Performance Amid Economic Headwinds. The hospitality industry is off to a promising start entering H2 2023, with typical seasonal trends developing and revenue per available room (RevPAR) continuing to grow.
Is the hospitality industry growing 2023?
In 2023, the global hospitality market reached nearly 4.7 trillion U.S. dollars and was forecast to grow to 5.8 trillion U.S. dollars in 2027 at a compound annual growth rate (CAGR) of 5.5 percent.
What is the future outlook for hospitality and tourism?
Leisure and hospitality projected to mostly recover pandemic-driven employment losses. The Bureau of Labor Statistics projects the U.S. economy to add 8.3 million jobs from 2021 to 2031. Of those, 1.9 million jobs—23.1 percent of all new jobs projected—are expected to be in leisure and hospitality.
What is the future of hospitality in 2023?
Seeing as many people have to travel for work, trends in the hospitality industry are driven by the need to create a tranquil experience for working professionals. In 2023, hotels will introduce the more co-working spaces to provide an enhanced and comforting experience for their guests staying longer.
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 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 hotel prices so high 2023?
Supply and demand imbalances aside, hotels are facing other challenges this year thanks in large part to persistently high inflation. “Hotels are faced with rising energy costs to heat and cool along with the rising cost of goods and services,” Hayley Berg, lead economist at Hopper, tells Money.
Will hotel prices go down in 2023?
If you thought 2022 was an expensive year to travel, get ready to spend even more in 2023. New data from travel site Hopper shows that U.S. hotel prices averaged $212 per night in January — that's 54% higher than the same month in 2022. Planning on taking a trip soon?