An Updated 2020 U.S. Hotel Outlook
Economic conditions are deteriorating quickly with the Covid-19 outbreak causing a sharp drop in economic activity.
- 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 Hotels
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated 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.