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.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).