Q2 Hotel Fundamentals Near or Above Pre-Pandemic Levels

U.S. Hotels | Q2 2022

03 Aug 2022 1 Minute Read

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Executive Summary

  • Hotel real estate fundamentals improved across the board year-over-year in Q2. Demand increased by 10.7%, occupancy gained 9.9%, revenue per available room (RevPAR) jumped 38.0% and the average daily rate (ADR) grew by 25.5%.
  • Compared with Q2 2019—a more relevant pre-pandemic benchmark—demand was just 2.0% less and occupancy was down by 5.5%. RevPAR increased by 6.0%, driven by ADR growth of 12.2% from strength in leisure travel, improving business and group travel and high inflation.
  • Labor shortages remain a headwind to full recovery in occupancy, with hourly hotel wages $14 less than the national average wage.
  • Most of the top 10 performing markets were leisure travel destinations in the South, with total RevPAR up 25% from Q2 2019. The weakest markets were mostly northern urban destinations, where average RevPAR fell by 18% from Q2 2019.
  • The relative strength of leisure travel, compared with corporate and group travel, has shifted the distribution of room nights booked via the various customer acquisition channels. OTA and channels both had higher shares in Q2 2022 than they did in Q2 2019.