Key Takeaways:
Top Line Metrics
August RevPAR declined 0.7% on a 1.7% decline in occupancy. Urban locations posted the strongest RevPAR growth, up 3.7% but remained below 2019 levels. Summer travel trends remained consistent in July and August.
Real RevPAR continues to decline as nominal RevPAR lags inflation. The spread between real and nominal RevPAR increased to 17.3 p.p. versus 14.1 p.p. in August of 2022. However, the pace of the spread widening appears to have abated.
Total revenue growth continued to outpace RevPAR growth. In July, total revenue rose 2.5%. Unfortunately, gross operating profit margins and profit dollars remained under pressure declining 1.8 p.p. and 2.5%, respectively, year over year.
Current Trends
U.S. loan origination was down again in August versus 2022. The pace of loan origination slowed in August to 11 vs. 17 a year ago. Hotel spreads narrowed to 419 bps from 478 bps in July and below the post-pandemic average of 458 bps.
Hotel job openings continue t
Article - U.S. Hotels State of the Union October - Total Revenue Growth Continued to Outpace RevPAR Growth - CBRE U.S. Hotels State of the Union October 2023 Edition
CBRE calls for a mild recession in 2023. GDP is expected to be flat in 2023 with negative growth in H1 2023 and positive growth in H2 2023.
Unemployment remains low but is expected to increase. Full employment and worker shortage will lead to further wage pressures.
CBRE expects higher and more persistent inflation. Inflation is expected to remain above the long-run average of 3.3% until 2024.
Hawaii hotels report substantially lower revenue and occupancy eturbonews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from eturbonews.com Daily Mail and Mail on Sunday newspapers.