Article - CBRE Hotels Reduces Near-Term Outlook Due to Softer Summer Demand - CBRE is reducing its forecast for hotel performance this year, as weaker-than-expected summer demand resulted in a shortfall in Q2 2023 revenue per available room (RevPAR).
As Occupancy Stalls, Parking Drives Hotel Revenue Growth | By Robert Mandelbaum and Todd Casper hospitalitynet.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from hospitalitynet.org Daily Mail and Mail on Sunday newspapers.
Article - As Occupancy Stalls, Parking Drives Hotel Revenue Growth - By Robert Mandelbaum and Todd Casper - With occupancy levels lagging during the post-COVID recovery and guest counts depressed, hotel owners and operators have had to look for alternative sources of revenue beyond the rental of guest rooms to make up for the income deficits. For some hotels in the U.S., parking has become a profitable source of revenue since COVID and helped fill in the revenue gap.
What a difference a year makes – in the 2022 edition of Trends® in the Hotel Industry, we wrote that major markets were still attracting developers and that new supply growth among the nation’s 65 major markets was expected to record an annual gain of 1.7%, which is above the long-run average of 1.5%. However, over the past year, the market conditions have changed with rising construction costs, rising financing costs, less financing options caused by the recent turmoil in the banking industry, and market uncertainty coming to the forefront, along with the recovery from the COVID-19 pandemic still playing a factor.
For the first time since the onset of the COVID pandemic, CBRE is forecasting the 2023 aggregate revenue per available room (RevPAR) for the nation’s 65 major markets to return to 2019 levels. In 2022, RevPAR recovered nationally but continued to lag in the major markets. According to the February 2023 edition of Hotel Horizons®, 88% of the 65 Horizons® markets are expected to have reached or surpassed their 2019 RevPAR levels by year-end 2023. This compares favorably to 2022 when just 58 of the Horizons® markets saw RevPAR return to 2019 performance levels. The eight markets lagging in recovery are in northern California, the upper-Midwest, and along the northeast corridor from Washington, D.C. through New York.1