Phoenix Hotels on the Rebound
CBRE is raising its forecast for hotel performance in the Phoenix metro and nationally on the heels of industry gains in Q4 2022 and the expectation of slightly positive GDP growth in 2023.
In Phoenix, revenue per available room (RevPAR) in 2023 is expected to increase to $122.30, up 8.5% year-over-year and an increase of $2.45 from its previous forecast issued in November 2022. This is due to a 40-base-point (bps) increase from the previous forecast. The average daily rate (ADR) is expected to increase by 3.2% to $172.46 in 2023.
“The hotel market for the Phoenix metro continues to remain strong with increased demand supported by both leisure and corporate growth,” said CBRE’s Adrienne Andrews. “In 2022, despite the first quarter occupancy and demand being impacted by omicron, the year ended with revenues that exceeded peak 2019 by over 18%.”