AHLA report indicates 21 of top 25 U.S. hotel markets in depression or recession

Despite an uptick in leisure travel, a new report released by the American Hotel & Lodging Association (AHLA) shows the road to recovery for the hotel industry is long, with 21 of the top 25 U.S. hotel markets remaining in a depression or recession. The new data shows urban hotels are still in a “depression” cycle, while the overall U.S. hotel industry remains in a “recession.”

Urban markets, which rely heavily on business from events and group meetings, continue to face a severe financial crisis, as they have been disproportionately impacted by the pandemic. Urban hotels were down 52 percent in room revenue in May 2021 compared to May 2019. For example, New York City, which remains in a depression, has seen one-third of its hotel rooms (42,030 rooms) wiped out by the COVID-19 pandemic, with nearly 200 hotels closing in the city.

The recent uptick in leisure travel for summer is encouraging for the hotel industry, but business and group travel, the industry