This week in Hospitality & Tourism #15 2023

Development is charging headlong into renovations

The hotel industry ended 2022 in its most stable state since before the pandemic, and despite lingering uncertainty the sector is not pausing for a breath before resuming development. While U.S. hotel construction is up for the first time since the end of 2020, most of these projects consist of renovations and conversions of existing properties as a result of new brands arriving all over the U.S. via Marriott International, Hilton, Hyatt Hotels Corp., Wyndham Hotels & Resorts and Best Western Hotels & Resorts.

Business Travel is Picking Up, Amid Headwinds

The third edition of Deloitte's corporate travel study indicates business travel continues to climb in the United States and Europe.

Key Findings:

• Responses from travel managers indicate that corporate travel’s rebound is on similar trajectories in the United States and Europe.
• Full recovery to 2019 spend volume appears likely by late 2024 or early 2025. However, corporate travel will likely be smaller than it was prior to the pandemic.
• International trips continue to grow, as challenges decline for visiting parts of the world. US respondents expect international's share of travel costs to jump from 21% to 33% in 2023. European respondents expect 32% in 2023 within the continent, and 28% beyond.

STR: U.S. hotel results for week ending 8 April

Affected by both the Easter and Passover calendar shift, U.S. hotel performance reflected lower year-over-year comparisons from the previous week, according to STR‘s latest data through 8 April.

• Among the Top 25 Markets, New York City saw the highest year-over-year increases in occupancy (+6.3% to 82.2%) and RevPAR (+19.4% to US$232.80).
• Houston showed the most substantial ADR growth year over year (+15.5% to US$119.91).
• The steepest RevPAR declines were seen in New Orleans (-45.2% to US$99.34) and Las Vegas (-28.3% to US$113.67).

2-8 April 2023 (percentage change from comparable weeks in 2022, 2019):

• Occupancy: 61.3% (-7.4%, -12.0%)
• Average daily rate (ADR): US$153.30 (+0.8%, +11.1%)
• Revenue per available room (RevPAR): US$94.00 (-6.7%, -2.2%)