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Special Report

Beyond the Health Crisis: National Hospitality Outlook

Third Quarter 2020

Small-Market and Affordable Hotels See Gains;
Long Road to Recovery Lies Ahead for the Lodging Sector

Hospitality’s progress slows amid spreading infection. Hotels, along with other businesses, began to see rising foot traffic in late spring as many cities initiated phased reopenings of their local economies. After bottoming out at 21 percent during the week ended April 11, average weekly hotel occupancy for the U.S. has improved to over 47 percent in late July. The pace of growth is slowing, however, as many metros, particularly those in the Sunbelt, have reported surges in coronavirus cases. Amplified health concerns have prompted rollbacks in reopenings, with markets such as Miami, Nashville, and Phoenix reporting modest occupancy contractions in July. Even in settings where the infection rate is dropping, hotel performance remains well below historical averages, driven by COVID-19’s profound impact on travel.
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