CBRE Revises 2022 Hotels Forecast, #HospitalityHelps Aids Refugees
March 19, 2022 | Hotels Editors
CBRE raises 2022 forecast: CBRE Hotels Research has raised its forecast for 2022 ADR, occupancy and RevPAR to reflect the stronger-than-expected performance in Q4. Other factors include below-average supply growth, robust domestic leisure trends, resumption of inbound international travel and a predicted return to office later this year. CBRE now predicts RevPAR to reach 2019 nominal levels by Q3 2022 instead of in Q3 2023 as previously forecast. CBRE expects that ADR will again surpass 2019’s levels following a pause this quarter, driven by a recovery in higher-rated, inbound international travel, resumption of more traditional business travel, labor market tightness and higher overall inflation. Domestic and drive-to resorts are expected to be favored again in 2022, as the war in Ukraine and rising cases of COVID-19 in Asia are likely to persuade wealthier travelers in the U.S. to opt for domestic destinations. Rising gas prices will affect budget-minded travelers who prefer interstate hotels.
US performance improves: Overall hotel performance across the U.S. improved compared to the previous week, according to STR’s data through March 12.
· Occupancy: 63.2% (-9.8%)
· ADR: US$144.68 (+7.7%)
· RevPAR: US$91.45 (-2.8%)
Although none of the Top 25 Markets registered a rise in occupancy over 2019, Miami came closest to its 2019 comparable (-4.7% to 84.1%). San Francisco/San Mateo saw the largest occupancy decline (-29.7% to 56.3%), while Anaheim posted the highest ADR (+34.4% to US$217.87) and RevPAR (+25.9% to US$168.60) increases over 2019. The steepest RevPAR deficits were registered in San Francisco/San Mateo (-44.9% to US$101.77) and Washington, D.C. (-37.5% to US$83.01).
#HospitalityHelps supported by 322 hotels: #HospitalityHelps, an online booking platform created by hospitality industry veterans to provide temporary hotel accommodation to Ukrainian residents, is now supported by 322 hotels across 38 countries for people fleeing the war in Ukraine. Almost 7,000 room nights were booked with 33,575 room nights available. The website www.Hospitality-Helps.org connects Ukrainian residents seeking shelter with hotels in Europe that provide free accommodation. Hotels looking to sign up and provide their room nights can do so here. There is no minimum required room night donation, but each reservation will be up to five nights in double rooms. Round the clock support is provided in three languages — Ukrainian, Russian and English by Ukrainian refugees who were successfully accommodated by #HospitalityHelps. The initiative was initiated by the PKF hospitality group, The Bench, HotelSwaps, Moodley, Museum Booster and Zoocha. Besides independent hotels, the global initiative has gained support from leading hospitality groups like Accor, IHG, Hilton and Marriott and is the only platform that works across brands and borders.
