Hotel recovery chugs along, but inflation and labor are ongoing concerns
As the hotel industry gathered for the Americas Lodging Investment Summit this week, it served as a chance to dive into projections and analysis for the year to come, and a consensus has emerged on both the recovery and the stumbling blocks ahead.
Leisure demand continues to drive the return to travel, while progress is underway with business and group bookings, but the largest events and companies have been some of the slowest to return.
Meanwhile, as rate and revenue growth remain promising, there is widespread concern over inflation, a persistent labor shortage and the next Covid-19 variant or development.
"It's been a strong recovery, but there are still some bumps in the road," said STR senior vice president Carter Wilson. "December was the strongest month the industry has had during the entire pandemic. And the week between Christmas and New Year's recorded the highest ADR (average daily rate) of any week ever. So, the leisure demand is not that deterred by omicron."
