This week in Hospitality & Tourism #11 2023
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CBRE has raised its hotel performance forecast for 2023, following industry gains in Q4 2022 and the expectation of marginally positive GDP growth this year.
- CBRE has revised its forecast for RevPAR to $97.46, up 5.8% YoY and an increase of $0.43 from its earlier forecast.
- The revision is predicated on around 30 basis points increase in expected occupancy as against the November 2022 forecast.
- The ADR forecast of $150.21 remained unchanged.
CBRE’s baseline-scenario forecasts predicted a rise of 0.2% for full-year 2023 GDP growth and inflation of 4.7%. Considering the robust correlation between GDP and RevPAR growth, CBRE expected the revised economic outlook to impact the lodging industry results directly.
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STR: U.S. hotel results for week ending 11 March
Helped by the onset of spring break travel, U.S. hotel performance increased from the previous week, according to STR‘s latest data through 11 March.
- Among the Top 25 Markets, Washington, D.C., saw the highest year-over-year increase in occupancy (+21.8% to 67.6%). None of the Top 25 Markets saw an occupancy lift over 2019.
- D.C. also showed the most substantial ADR (+23.4% to US$183.86) and RevPAR growth (+50.2% to US$124.33) year over year.
- In terms of ADR, Anaheim reported the highest ADR (+51.4% to US$245.62) and RevPAR (+42.2% to US$189.81) increases when measuring against 2019.
- The steepest RevPAR declines from 2019 were seen in San Francisco (-22.8% to US$144.02) and Minneapolis (-15.2% to US$61.44). Year over year, San Diego (-16.1% to US$61.99) reported the largest RevPAR decrease.
5-11 March 2023 (percentage change from comparable weeks in 2022, 2019):
- Occupancy: 64.7.8% (+2.8%, -7.5%)
- Average daily rate (ADR): US$158.20 (+8.1%, +16.6%)
- Revenue per available room (RevPAR): US$102.38 (+11.1%, +7.8%)
