This week in Hospitality & Tourism #35 2022

Short-term Rentals Are Achieving Higher Average-daily-rate Growth Than Hotels

Demand recovery for both the hotel and short-term home rental sectors appears to be happening quickly, but there's clear differences between the two. "Hotels, home rentals and how performance trends continue to evolve," AirDNA Director of Product Max Bernstein said as of June 2022, demand for short-term rentals is up 21% indexed to 2019, while hotel demand is down 3.4%.

June 2022 year-to-date data indexed to 2019 shows for every one home rental sold across all location and market types in 2019, nine hotel rooms were sold, whereas in 2022 the ratio dropped to seven rooms, Collazo said.

CBRE: U.S. Hotels State of the Union

• Macroeconomic headwinds and leading indicators highlight an elevated risk to the back half of 2022 and 2023.
• Hotel wage growth continues to outpace retail wage increases.
• The pace of the international travel recovery slowed slightly in the east but continued to improve in the west.
• Despite improvements in ADR and occupancy, RevPAR recovery continues to be driven primarily by ADR growth.
• Gross operating margins remain well above 2021 levels.
• The supply outlook continues to face headwinds caused by labor shortages, wage pressure, and supply chain issues.

LE: Early-planning global construction projects reach record high

According to the bi-annual Global Construction Pipeline Trend Report from Lodging Econometrics (LE), the total global construction pipeline at the end of the second quarter stands at 14,117 projects/2,293,131 rooms, up 5% by projects and 2% by rooms year-over-year (YOY).

At the end of the second quarter, the top countries by project count:

• United States with 5,220 projects/621,268 rooms (37% of the projects)
• China with a current pipeline of 3,693 projects/701,974 rooms. (26% of the projects)
• India with 339 projects/42,548 rooms.
• United Kingdom with 309 projects/46,296 rooms.
• Indonesia with 284 projects/45,359 rooms.

STR: U.S. hotel results for week ending 27 August

U.S. hotel performance came in lower than the previous week and showed mixed comparisons with 2019, according to STR‘s latest data through 27 August.

• Among the Top 25 Markets, Orlando reported the largest occupancy increase over 2019 (+21.1% to 63.8%).
• Miami posted the largest ADR gain over 2019 (+32.2% to US$180.17).
• The steepest RevPAR deficits were in San Francisco (-39.2% to US$143.37) and New Orleans (-23.1% US$54.57).

21-27 August 2022 (percentage change from comparable week in 2019):

• Occupancy: 65.0% (-2.5%)
• Average daily rate (ADR): US$147.16 (+15.0%)
• Revenue per available room (RevPAR): US$95.62 (+12.1%)