Hotel Demand, Occupancy, RevPAR & ADR All Increased in Q3

U.S. Hotel | Q3 2022

November 3, 2022 2 Minute Read

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Executive Summary

  • Hotel real estate fundamentals improved across the board year-over-year in Q3. Demand increased by 4.2%, occupancy gained 3.8%, revenue per available room (RevPAR) rose 15.4% and the average daily rate (ADR) grew by 11.2%, outpacing Q3 inflation by 3 percentage points.
  • Compared with Q3 2019—a more relevant pre-pandemic benchmark—demand was 2.1% less and occupancy was down by 4.7%. RevPAR increased by 9.1%, driven by ADR growth of 14.5%.
  • Labor shortages remained a headwind in Q3, with an average of more than 20 job openings per hotel and hourly hotel wages nearly $14.50 less than the national average wage.
  • All the top 10 performing markets were in the South, with total RevPAR up 21% from Q3 2019. Most of the weakest markets were urban destinations, where the average RevPAR fell by 11% from Q3 2019.
  • RevPAR for airport, small town, interstate, resort and suburban location types exceeded 2019 levels in Q3. Urban hotel RevPAR was at 98% of 2019 levels in Q3.
  • National ADR jumped 14%, with increases across all chain scales. High inflation should continue to drive ADR growth this year.
  • share increased to 21% in Q3 2022 from 19.5% in Q3 2019. OTA share remained flat. All other distribution (customer acquisition) channels had lower shares in Q3 2022 vs. Q3 2019.