Industry Update
Press Release 2 September 2021

CBRE's U.S. Hotels' State of the Union - September 2021

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1 min
PKF Hospitality Research

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. 

READ THE FULL PRESENTATION

About CBRE Group, Inc.

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.

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