Key Takeaways

  • The occupancy recovery has flat-lined and RevPAR gains have lost some momentum as we head into fall. 
  • International travel restrictions continue to benefit U.S. hotels and the bulk of inbound travelers are now coming from Latin America, a meaningful change since prior to the pandemic. 
  • Despite record fixed investment, business confidence has begun to wane. This comes just as corporations large and small are set to embark on the 2022 budget season.
  • Search trends for both leisure and business travel have begun to soften, both on an absolute and on a seasonal basis. In addition, there has been an uptick in searches related to hotel cancellations.
  • Construction inputs – wood, steel, labor, wages – are a material headwind to new construction and the pressures don’t
    show signs of abating.
  • Despite labor cost pressures and shortages, Limited-Service hotels generated orating profit 154.1% GREATER in June 2021 than in June 2019. See a complete breakdown of hotel revenues and operating profits by asset type.
  • The capital markets picture continues to improve. More lenders are entering the market, 30-day delinquency and special servicing rates are all in decline. It will be interesting to see if this trend holds as we enter the traditionally business-traveldependent fall season. 

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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.