#Hospitality Industry in the U.S.: My Insights and Outlook

The hotel industry is like a rollercoaster ride. One minute you're soaring to new heights and the next, you're plummeting to the depths of despair. But, let's focus on the positive, shall we? The good news is that we're slowly but surely catching up to our pre-pandemic room demand levels, and room rates are making a comeback - think of it as the hotel industry's version of a comeback tour.

But let's be real, inflation is like that annoying little sibling that always wants a piece of your cake. It's eating away at our gains, but don't worry, we'll find a way to outsmart it.

Now, some markets are killing it, while others are still struggling to reach their 2019 revenue levels. But let's not forget, every cloud has a silver lining, and in this case, it's the markets with strong leisure appeal. They're like the rockstars of the hotel industry, stealing the spotlight and leaving the rest of us feeling a little bit envious.

And just like the hotel industry, travelers have also had a wild ride. But the good news is, they're still planning on maintaining group interactions for events and training in 2023. So, if you're in the event planning business, don't pack away your sparkly suit just yet.

As we head into the new year, we're facing a mild recession, but don't let that dampen your spirits. The president of Tourism Economics, Adam Sacks, has a "subdued optimism" for the future and so should we. The hotel industry is resilient and we'll come out of this stronger than ever. So, let's put on our party hats and celebrate the comeback of the hotel industry!

While the hotel industry still faces challenges, it's important to remember that it's a resilient industry. By staying informed with the latest data and insights, like those provided by CoStar/STR and other trade organizations, we can stay optimistic and confident about the future of the hotel industry.

Some takeaways:

• November 2021 room demand was 1.2% or roughly 1.2 million rooms below the 2019 results, but it is likely that monthly demand will eventually top 2019.
• Room rates have shown another month of double-digit growth, but in real terms, ADR was actually 0.7% below 2019 results. Inflation is eating up the gains made on the rate front.
• October P&L data showed that GOP and EBITDA per available room are both back to pre-pandemic levels. Labor costs are back to where they were in 2019.
• Markets with strong leisure appeal such as Miami, San Diego, or Nashville are now producing total revenue and GOP above 2019 levels. Markets dependent on group and corporate transient demand are still well off their 2019 revenues.
• Travelers intention into 2023: Red, less, outweighs the green, more, for all answers. Half the respondents say that they will maintain their group interactions, be it for events and training.
• The president of Tourism Economics, Adam Sacks, expresses concerns about consumers' debt and its potential to undercut the leisure market. He is optimistic about the outlook for lodging in the next year due to the growth in travel and lodging demand in 2023.

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My Takeaways from Jan Freitag's Latest Article on CoStar Group. Rav Singh, CCIM?serves as the Hospitality Product Division Leader for #KWCommercial International.?He brokers hotels and syndicates multifamily and commercial real estate investments, in partnership with #SpurEquity,?throughout North America.