Hotel demand in the US will not return completely to pre-pandemic levels until 2023, according to the latest forecast revision from STR and Tourism Economics. Jan Freitag, STR’s senior vice president of lodging insights, said that compared with the last forecast, demand projection has actually improved for 2020 from minus 45% to minus 36.2%. But, he added, it is now expected to take 11 quarters for the number of room nights sold to rise to the corresponding levels of 2019. Similarly, he said, it will take until 2023 for occupancy to reach the 20-year historical average. With lower occupancy and more discounting, said Freitag, average daily rate (ADR) should show a slower recovery timeline even with more normalization each quarter. He said the projection for ADR has been improved for 2021 from +1.7% to +5.2%. Despite this better growth rate next year, said Freitag, “we do not see ADR recovering to pre-2020 levels in the next five years.”