Source: CBRE Hotels

Economic conditions are deteriorating quickly with the Covid-19 outbreak causing a sharp drop in economic activity.

Key Findings:

  • CBRE expects GDP growth will slow to 0.4% in 2020.
  • U.S. RevPAR will decline by 37% in 2020, with a contraction of more than 60% in Q2.
  • Demand will decline by 28% in 2020; ADRs are expected to decline 11% in 2020.
  • The most complex constraint impairing travel comes from social distancing efforts and travel or group gathering restrictions on global populations.
  • Properties that primarily cater to discretionary travel will be affected most, i.e. luxury, upper upscale, urban, airport, and resort properties.

CBRE Hotels Research has released a preliminary 2020 forecast that analyzes the impact of the pandemic on hotel performance and provides insight as to how hotels may start to recover in the back half of the year.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

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