Green Street Sees Slowdown Ahead for Leisure Hotels’ Growth
The leisure travel segment has rallied since the depths of the pandemic, compared with lodging properties more reliant on business travel. However, a new report from Green Street questions how long the party will last.
“U.S. resort hotels have enjoyed an unprecedented run of pricing power since mid-’21, with average daily rates (ADR), RevPAR, and hotel EBITDA well-above pre-COVID peaks in many leisure destinations, especially ‘drive-to’ locations,” the report states. Yet “quickly normalizing travel patterns, worrying consumer sentiment, and macroeconomic storm clouds beg the question of whether leisure travel is due for a course correction.”
Looking at the macroeconomic environment, Green Street says declining economic conditions and bleak consumer sentiment “appear likely to impact discretionary spending more immediately and to a greater degree than other areas of the economy.” Accordingly, Green Street expects “a slowing in recent eye-popping growth and suggest that expected returns are modestly below urban hotels.”
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).
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