Widespread normalization of global travel patterns should return hotel-market fundamentals to pre-pandemic levels in 2023, reported CBRE.
Hotel RevPAR improved in all three global regions in 2022. RevPAR in the Americas hit 108 percent of pre-pandemic 2019 levels, and Europe was nearly on par at 97 percent, while Asia Pacific (APAC) lagged at 68 percent. The recent easing of travel restrictions in China and Japan, along with a resurgent Chinese economy, should return APAC’s RevPAR to pre-pandemic levels this year.
Seasonality and the relative performance of different asset types and locations are unlikely to fully return to pre-pandemic patterns as increased work location flexibility, net-migration shifts and geopolitical, foreign exchange and economic differences may make post-pandemic trends somewhat sticky.
Persistently high inflation is driving the increase in average daily rates, moderating margin gains and slowing supply growth to below-average levels.
