US Hotels State of the Union February 2023 Edition
A Pictorial Update on Our Latest Thoughts and the Facts and Figures Influencing Our Industry
March 1, 2023 15 Minute Read
Looking for a PDF of this Content?
EconomyPersonal savings rate increased for the eighth consecutive month.
Personal savings rate continued to increase in January to 4.7% up from the low of 2.7% in June 2022.
Job openings per hotel increased in December.
Job openings per hotel increased to 30 in December near the all-time high of 31 in December 2021. This is consistent with the trend in national job openings.
Hotels continued to face wage pressures in January.
Hotel wages increased 7.2% in January, higher than the 4.6% increase in retail wages. Labor shortages suggest wages will remain elevated.
Current TrendsGOP margins contracted again in December.
Higher labor and utility costs impacted GOP margins for the seventh straight month. Despite margin contraction, profit dollars increased 7% Y-o-Y.
Office attendance continues to lag.
Following the holiday period, office attendance failed to reach 50% in February and is below October 2022 levels.
RevPAR relative to 2019 levels was steady.
January RevPAR increased 26% Y-o-Y owing to easier Omicron comparisons in 2022, relative to 2019 RevPAR trends which remained consistent at 106%.
Food for ThoughtCBRE raises RevPAR estimate for 2023.
With RevPAR recovered to 2019 levels in 2022, CBRE increased its 2023 RevPAR estimate by $0.43 to $97.46 a 5.8% increase Y-o-Y.
Post-pandemic credit spreads have widened 145 bps.
While profits have increased, interest rates and spreads continued to widen in January.
Real consumer credit is below pre-pandemic highs.
Contrary to popular narrative, real consumer credit levels remain below pre-pandemic highs representing 6.7% of real personal disposable income