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Special Report

Hospitality

4Q 2021

Outlook for Hotels Remains Bifurcated in 2022;
Investment Demand Surging Back This Year

Summer vacations jump-started recovery. The U.S. lodging sector entered the autumn season having made up substantial ground during the spring and summer months. Loosened capacity restrictions, vaccine availability and pent-up travel demand led to a marked increase in trips taken and rooms occupied. By the end of July foot traffic through airport check-points had recovered to about 80 percent of 2019 volumes, driven largely by leisure travelers, while hotel occupancy had roughly doubled from where it began 2021. Nightly rates improved even more notably, with the average daily rate for July surpassing the same metric from two years prior by 6 percent. Although partially mitigated by inflation, the rapid ADR recovery underscored the strong demand to get away that manifested this year.

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