Key Takeaways:

Capital Markets

  • Margins remain under pressure across all segments.
    Margins declined 2.7 percentage points in May. Subsequently, gross operating profit dollars for all hotels decreased by 2.5% year-over-year in May.
  • U.S. loan origination was down again in July versus 2022.
    The pace of loan origination continued to slow in July to 5 from 19 a year ago as interest rates continued to rise. Hotel CMBS interest rates reached 9.4% in June, up from 8.5% a year ago.
  • Full-service price per key declined while limited service increased.
    Year over year, full-service price per key dropped 18.4% in Q2 to $144,963 per key. Limited-service asset price per key rose 2.1% to $94,511.

Current Trends

  • June RevPAR declined 0.1%. on a 1.8% decline in occupancy.
    Chain-affiliated hotels outperformed increasing 1.6% year-over-year in June compared with a 4.8% decline for independent hotels.
  • Outbound U.S. travelers outpaced inbound international visitors.
    Americans traveling to Europe and the Caribbean exceeded 2019 in June by 4.6% and 8.5%, respectively. Inbound international travel continued to lag at 73% of 2019.
  • demand has increased materially versus OTAs.
    Relative to 2019, demand has increased 11.5% outpacing other booking channels including OTAs which were 1.8% below 2019 levels.

Food for Thought

  • Wage growth is outpacing inflation for the first time in two years.
    Wages grew 4.4% in June, outpacing the 3.1% growth in the consumer price index which could lead to increased bookings going forward.
  • Excess savings are being spent but consumers still have money for now.
    Consumers have been spending excess savings accumulated during the pandemic, with $770 billion remaining. The personal savings rate was 4.3% in June, below the historical average of nearly 6.5%.
  • Short-term rentals appear to be taking share from hotels.
    Hotel demand growth declined 1.5% in June while short-term rental demand rose 14.3%, suggesting that short-term rentals may be taking share from hotels.


About CBRE Group, Inc.

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