CBRE forecasts a strong recovery for U.S. hotels in 2021 and 2022, with RevPAR (revenue per available room) climbing back to pre-crisis levels by 2023.
“The hotel market, along with the retail market, provides us with one clear indicator of private-sector economic health,” said Richard Barkham, CBRE’s global chief economist and head of Americas research. “By this measure, a promising recovery has begun to plateau due to the resurgence of the virus in parts of the U.S. Momentum could be further derailed at any time. For the time being, the industry appears to be past the worst fallout from the crisis. We think the current flare-up will be contained without too much damage to the economy, but the downside risks are rising. Either way, it will take a further 36 months for the sector to return to pre-crisis performance levels.”
Barkham added: “Among commercial real estate asset types, hotels react the fastest to economic changes because they can fill up or empt