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Fourth-Quarter U.S. Lodging Outlook Tempered by Delta Variant’s Spread
The COVID-19 delta variant’s emergence and spread has hampered plans for group and business travel this fall and winter, leading CBRE Hotels Research to temper its expectations for fourth-quarter U.S. lodging performance. CBRE’s tempered outlook extends into 2022, given the likelihood that corporate travel budgets will remain constrained next year.
“The delta variant and increasing number of COVID infections led to delays in ‘return to office’ plans at many firms and coincided with the start of the 2022 travel-budgeting season,” said Rachael Rothman, CBRE’s head of hotel research & data analytics. “Unfortunately, for business-centric hotels, the rebound in business travel expected in September of 2021 is now delayed and will likely have a ripple effect into 2022’s corporate travel budgets.”
CBRE now forecasts that U.S. hotels will achieve a 2021 annual occupancy level of 54%, along with an ADR of $112.85. The resulting RevPAR of $60.91 will be 41.7% greater than the $42.97 recorded in 2020. However, that’s still 29.3% less than the 2019 average.
- ◦Economy
