National hotel occupancy is up nearly 2,000 basis points from pandemic lows to a trailing 12-month average of 60.6 percent in April, according to Marcus & Millichap.
Average daily rates (ADR) have made more gains, up about 3 percent from the previous all-time high. One factor contributing to the rapid ADR lift is insufficient availability of labor. While well advanced from May 2020, total accommodation employment is still about 20 percent below pre-pandemic levels. Unable to service all rooms and pressured by rising wages, many hoteliers have increased rates to offset the differential as demand outpaces capacity and increasing costs impact the bottom line. Moving forward, though, a boost in U.S. visa allotments could help alleviate some hiring challenges as more workers return to or enter the United States.
As of June, nearly all mandates to wear masks indoors or on public transit have been rescinded, a sign that health concerns are beginning to subside. This is we