STR, TE Again Downgrade Hotel Forecast

STR, Hendersonville, Tenn., and Tourism Economics, Wayne, Pa., once again slightly downgraded their forecast for the U.S. hotel sector.

Hotel Sector Recovery Slows

The hotel sector recovery has slowed in recent months after rebounding in the fall from April lows, said Fitch Ratings, New York.

Analysts Downgrade Hotel Outlook

Full recovery in U.S. hotel demand and room revenue remains unlikely until 2023 and 2024, respectively, said STR, Hendersonville, Tenn., and Tourism Economics, Wayne, Pa. The firms slightly downgraded their hotel outlook report.

CBRE Forecasts Hotel Demand Recovery by Late 2022

After suffering the greatest performance declines in U.S. history, the nation’s hotels will likely benefit from a relatively rapid economic turnaround in 2021 and 2022, said CBRE Hotels, Atlanta.

April Sees ‘Historic’ Hotel Profitability Drop

U.S. hotel profitability metrics cratered during April, reported STR, Hendersonville, Tenn. During April, the sector saw total revenue per available room fall nearly 93 percent year-over-year and gross operating profit per available room fall 116.9 percent to a $17.98 loss per room.

Analysts Downgrade Hotel Forecast Again

STR and Tourism Economics once again updated their hotel sector forecast. They now expect a 57.5 percent revenue per available room decline this year and a 48 percent RevPAR increase next year.