U.S. Leisure Travel Expected to End 2022 14% Higher Than 2019 Levels

The DJIA fell 100 points, Nasdaq was down 92, the S&P 500 was down 25 and the reason for the punch bowl being taken away from the recent rally was the 10 year treasury yield spiking .13 today to 4.13%. Lodging stocks were mixed.

STR said US RevPAR was up 26.7% year over year for the week ending 10/15. When compared with the similar week in 2019, RevPAR was up 12.5%.

A new analysis completed in partnership between the American Hotel & Lodging Association and Kalibri Labs projects U.S. hotel leisure travel revenue to be 14% higher by the end of this year than it was in 2019. Additionally, business travel revenue within the hotel industry is expected to reach 99% recovery by the end of this year. Among the fifty biggest hotel markets in the country, about 80% are expected to exceed their pre-pandemic revenue, though that number lowers to 40% in the business travel category. Miami’s hotel leisure travel revenue is expected to outgrow its pre-pandemic level by 33%, whereas San Francisco is projected to remain just under 19% of its 2019 revenue. 

The Hospitality Asset Managers Association released the results of its Fall 2022 Industry Outlook Survey. Highlighted results include: approximately 60% of respondents believe most of their portfolios will exceed 2022 budgeted RevPAR. Nearly half of participants expect 75-100% of their portfolio to exceed 2022 budgeted GOP. Asset managers currently are most concerned about labor availability, labor costs, and demand. Just under 50% believe industry RevPAR levels as a whole will return to 2019 levels by 2023, while approximately 40% predict it will occur in 2024. Roughly 80% of those surveyed actively are seeking acquisition opportunities.

Marriott International reached an agreement with Hoteles City Express, S.A.B. de C.V. to acquire the City Express brand portfolio, marki