Intelligent Investment
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

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Key Takeaways:
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Economy
Personal 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 Trends
GOP 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 Thought
CBRE 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