Two Forecasts Point to Strong 2023 Hotel Performance
Skift Take
- Despite projections of persistent inflation and a moderate economic recession, CBRE’s November 2022 Hotel Horizons forecast calls for a 5.8% increase in RevPAR in 2023, up from CBRE’s previous forecast of a 5.6% increase.
- The hotel industry in 2023 is projected to surpass pre-pandemic levels of demand, nominal room revenue and state and local tax revenue, while inching closer to other key 2019 performance metrics.
- Starwood Capital Group, and Adventurous Journeys Capital Partners, announced the launch of Field & Stream Lodge Co., a branded hospitality platform aiming to create modern and affordable lifestyle lodging across the United States.
The DJIA rose 369 points while Nasdaq was up 191, the S&P 500 rose 59 points and the 10-year treasury yield was down .02 to 3.53%. Lodging stocks were higher across the board. MCG was the big winner, up 12% while INN, VCSA and PLYA each rose 5% on the day.
Despite projections of persistent inflation and a moderate economic recession, CBRE’s November 2022 Hotel Horizons forecast calls for a 5.8% increase in RevPAR in 2023, up from CBRE’s previous forecast of a 5.6% increase. Propelling CBRE’s increased outlook for RevPAR is an expected 4.2% rise in ADR, driven in part by the continuation of above-long-run-average inflation. For 2023, CBRE is forecasting the Consumer Price Index in the U.S. to increase by 3.5% year over year. By the end of 2023, CBRE forecasts all chain scales to have surpassed their respective 2019 RevPAR levels. Economy and midscale hotels recovered to 2019 levels in 2021. Luxury and upper-upscal
