It’s been a harrowing three years for the global hotel industry. The pandemic shook the global hotel industry to its core, but slowly and painstakingly, the industry is bouncing back.
Now, according to a recent report from the American Hotel & Lodging Association, the pandemic is slowly sliding away from our view while staffing shortages and the economy are gaining prominence as the new operational challenges that will be keeping hoteliers awake at night.
The report is based on data and analysis from Oxford Economics and was created in collaboration with AHLA Platinum Partners STR, Avendra, Ecolab, Encore, and Oracle. While the report does focus on the American hotel industry, its findings are interesting nonetheless and undoubtedly will mirror some of what may occur in Canada as well.
Here are a few of the top findings from the report:
- Nominal room revenue in 2023 is projected to reach new heights ($197.48 billion vs. $170.35 billion in 2019). While these numbers are not adjusted for inflation, and real revenue recovery will likely take several more years, the trendlines are positive.
- Room-night demand in 2023 is projected to surpass pre-pandemic levels (1.3 billion occupied room nights vs. 1.29 billion in 2019).
- Average hotel occupancy is expected to reach 63.8 per cent in 2023 – just shy of 2019’s 65.9 per cent.
- Staffing is expected to remain a significant challenge for U.S. hotels in 2023, with hotels projected to employ 2.09 million people in 2023, down from 2.35 million in 2019.
- Inflation for a number of hospitality-related products will continue to run five per cent to upwards of 10 per cent for the next few quarters.
- Group business has a bright future: AHLA Platinum Partner Encore reports that 70 per cent of planners surveyed for the company’s Fall 2022 Planner Pulse Report were either booking or actively sourcing new events, and 61 per cent were expected to have larger budgets in 2023.
For more information on the AHLA Report, click here