STR Americas - Market Snapshot 2022/2023
The Americas had a successful year, building on hotel performance recovery already set in place from 2021. While the early months of 2022 showed lower performance due to Omicron, the region held strong from March onwards resulting in levels of average daily rate (ADR) and revenue per available room (RevPAR) that were higher than the 2019 comparables. Occupancy, while improved from the two years prior, still remained slightly below the pre-pandemic comparable.
Despite the recovery in top-line performance, the Americas’ bottom line did not show the same level of momentum. The region’s hotel industry failed to reach or exceed 2019 levels in any of the profit & loss key performance indicators. The metric that came closest to its pre-pandemic comparable was labor costs, at 85% of 2019 levels, which followed a similar trend around the globe as the industry experienced high levels of hospitality unemployment throughout the year.
While the Americas showed a resurgence in top-line performance, recovery was not equal among the STR-defined subcontinents. South America was the only subcontinent to show a decline from 2019 in each of the three key performance metrics: occupancy (-2.6%), ADR (-3.8%), and RevPAR (-6.3%).
The Hotel Yearbook 2023 - Annual Edition
As we have embarked on 2023, it is evident that the hotel industry has made a robust recovery from the
pandemic.
Occupancy and pricing have returned to their pre-pandemic levels. However, the future of our
industry is contingent
on how nimble the hospitality sector can be in adapting to ongoing innovation, changing market
conditions, evolving
consumer preferences, new staffing challenges, and sustainability realities. These uncertainties are
the new normal
in an unpredictable world.