Detroit Hospitality Market Report
Motor City Hotel Performance Revs Up;
Labor Dynamics Point to an Improved Outlook
Positive hiring trends aiding summer performance. Hoteliers in Detroit have struggled to recruit staff in the wake of the pandemic, but solid job gains were made in this segment in April and May. A lack of employees previously prevented some of the larger hotels from booking at full capacity in 2021 and early 2022, stunting performance metrics. Now in May, the trailing 12-month average RevPAR and ADR figures reached their highest post-pandemic levels, even with omicron’s effect on travel earlier this year. Because of this, the annual metrics fail to capture the sharp rise in demand that played out this spring and summer. May occupancy measured above 60 percent for the first time since 2019, while ADR in Detroit was already ahead of the 2019 level entering June.