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Market Report

Mid-Atlantic Hospitality Investment Forecast

2022 Outlook

Tourism Recovery Led by Seaside Locales;
Major Metros Maintain Upward Momentum

Outdoor experiences spearhead hospitality recovery. As lockdown restrictions began to relax last year, many tourists looked toward nearby nature destinations, benefiting coastlines close to major metros. Delaware and the Jersey Shore currently lead the region in occupancy and RevPAR improvement, with the former surpassing 2019 levels in these metrics last year. Tourism in Delaware was also boosted by the 2021 return of Firefly, the East Coast's largest annual music festival. Due to ease of access to large nearby markets, occupancy in these coastal locales should stay elevated as health risks ameliorate. The rapid expansion proportional to existing stock in these areas, however, could create near-term headwinds. Additionally, reopening offices should help lift business travel and give a boost to the Mid-Atlantic's major urban centers. Though Philadelphia will welcome more major events this year, numerous room openings will keep some downward pressure on occupancy and potentially daily room rates. A full RevPAR restoration here will be further down the line. Moving west, Pittsburgh is on track for a more complete recovery in 2022. Ongoing corporate expansions and an active academic base support visitation, with offices and campuses reopening.
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