Uptick in COVID-19 Seen as Threatening Hotel Recovery
CBRE report sees momentum slowing after 10 weeks of improvements >>
by: Harvey Chipkin
The uptick in COVID-19 cases threatens the hotel industry’s recovery, according to the latest report from CBRE, the industry consultants. After 10 consecutive weeks of occupancy gains, according to the report, the industry was in a better position than expected six weeks prior. For the week ending June 27, US hotels reached more than 46% occupancy, more than double the low point of 22% in April. As more states pause their reopening plans, said the report, a resurgence in cases is expected to once again impact lodging demand. The speed of recovery is expected to slow in July and August, especially for luxury and upscale properties. CBRE’s forecasts show that RevPAR (revenue per available room) will decline 52% this year, and occupancies will average just 41%. CBRE expects a strong hotel revenue recovery in 2021 and 2022, with RevPAR recovering to pre-crisis levels by mid-2023.
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