STR and Tourism Economics project the recovery of hotel demand and room revenue won't happen until 2023 or 2024, respectively.
HENDERSONVILLE, Tennessee—Full recovery in U.S. hotel demand and room revenue remains unlikely until 2023 and 2024, respectively, according to the slightly downgraded STR and Tourism Economics forecast just released at the 2020 Hotel Data Conference.
“Performance recovery is going to remain slow and well off of the pre-pandemic pace until the context for travel improves and group business begins to return,” said Amanda Hite, STR president. “To show how far levels have fallen year over year, the 40% demand decrease we project for Q3 2020 will be a substantial improvement from the 57% decline realized during Q2. Even with a slight improvement in ADR projections through 2021, pricing confidence will lag an eventual rise in occupancy. As a result, the $32 billion gain we forecast for room revenue from 2020 to 2021 will push the industry to a level that is still 32.5% lower than 2019.”
“Economic recovery is ongoing, but fragile, and COVID-19 is expected to continue to define the travel environment through the first quarter of 2021,” said Adam Sacks, Tourism Economics president. “This sets a pace of tempered, cautious recovery in travel activity in the near term, with much stronger growth anticipated in the second half of next year.”
A note to editors: All references to STR data and analysis should cite “STR” as the source. Please refrain from citing “STR, Inc.” “Smith Travel Research” or “STR Global” in sourcing as those names no longer fit within the STR brand.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.
About Tourism Economics
Tourism Economics, an Oxford Economics company, focuses on the intersection of the economy and travel sector, providing actionable insights to our clients. We provide our worldwide client base with direct access to the most comprehensive set of historic and forecast travel data available. And our team of specialist economists develops custom economic impact studies, policy analysis, and forecast models.
+1 (615) 824-8664 ext. 3500
Director, Lodging Analytics
+1 610 995 9600
The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editorial Director Stephanie Ricca at email@example.com.