Source: Travel Weekly
By Donna M. Airoldi
July 10, 2020
Despite 10 consecutive weeks of week-over-week occupancy gains for the U.S. hotel industry, the recent uptick in Covid-19 cases could damage the industry’s recovery, according to the latest report from CBRE, which kept its lodging forecast relatively close to its late May update.
CBRE expects 2020 U.S. revenue per available room to decline 52% year over year, with average occupancy at 41%, well below last year’s record of 66.1%. CBRE still expects strong revenue recovery in 2021 and 2022, given an anticipated quick rebound in growth and the historic resiliency of travel demand.
The report notes two headwinds for U.S. hotels: a contraction in overall economic activity and the need for social distancing. “The speed of recovery is expected to slow in July and August as demand returns to states that open back up for travel and pauses or pulls back in areas where case numbers begin increasing again,” according to CBRE.
…
