Hospitality Sector Improving and Forecast to Continue Getting Even Better: CBRE
Originally published on April 13, 2021, by Michael Tucker for Mortgage Bankers Association.
The hotel sector is coming back–slowly–from its pandemic-related downturn, analysts said.
CBRE, Dallas, reported U.S. hotels saw their worst occupancy level last year since the Great Depression. But the continued rollout of COVID-19 vaccinations and additional stimulus funds have strengthened the foundation for the sector’s recovery. It now forecasts an average national occupancy level of 43.0 percent in first half of 2021 and 55.1 percent in the second half of the year.
“Our current forecast takes into account a national rollout of the COVID vaccines, plus the December COVID Relief Bill, both of which support the projections of improved performance during the second half of the year,” said Rachael Rothman, Head of Hotels Research & Data Analytics for CBRE. “Based on our forecasts, the worst of the top-line declines are now behind us. We are beginning to see green shoots of a recovery in air travel data, booking patterns, and revenue per available room.”