CBRE Hospitality Market Update - Memorial Day 2021 Edition
Key Takeaways
Key Takeaways
- The college-educated unemployment rate – key for business travel – is now within 100 bps of its pre-pandemic levels and has been consistently improving since the start of the year. (Slide 7)
- Business investment and business confidence are at all-time highs. (Slide 13)
- Key business travel word searches are now down approximately 20% from pre-pandemic levels. (Slide 14)
- The recovery is not just leisure-based at this point. (Slide 17)
- Construction cost inputs will limit supply growth, bolstering same-store RevPAR growth this cycle. (Slides 19 – 21)
- Labor shortages and wage pressures are a headwind to NOI recovery, but operators are smart and have found efficiencies in each of the last cycles. (Slides 23 -26)
- Lenders continue to reenter the market as delinquencies wane, but construction lending still lags. (Slides 28 – 31)