The tale of the looming recession was mixed, with some forecasting a shallow, short-lived recession, and others expecting a more significant impact. The overall sentiment remains a positive one, and that cash flow growth should continue. Despite high inflation, other economic markers, such as consumer goods, mortgage default rates, and low unemployment rates, look positive. ADR will reach new highs in 2022, with further, albeit more muted, growth expected through 2023. With little push-back being seen in the market on higher ADRs, hotel owners are able to tap into this revenue source to combat higher operating costs, inflation, the rebuilding of reserves, and the necessary funding of PIPs and renovations otherwise delayed during the pandemic. Urban gateway cities, such as NYC and San Francisco, are still feeling the effects of the pandemic, as most international travel has yet to rebound. With the recent lifting of inbound testing requirements, the rebounds in these gateway cities will gain steam. Luxury travel also remains strong, and luxury ADRs should also see lift given strong personal income levels. Demand could reach 2019 levels by next year, pending the return of labor. CEOs still face 20% to 25% labor shortages in select locations, and 10% in others. In these locales, demand may be plentiful, but with labor unavailable, some hotel floors sit empty and out of service. Hotel operators are finding success with tapping into "gig" independent worker options and offering same day pay. Younger team members are prioritizing flexibility, working for a company by which they can be inspired; technology investments; and experiences over material items. Ramping up staff will be critical in order to manage the returning wave of group demand. The pick-up in group room nights that is materializing for the fall of this year is positive, together with the lifting of the testing requirement. The return of group demand was noted as a particular bright light emerging on the horizon. The window to solve the staffing shortage for the industry is closing. Many held confidence that if the industry just survived an impact as significant as the COVID-19 pandemic, whatever comes from a near-term recession would be readily handled. A hotel’s ability to quickly adjust ADRs to manage a recessionary environment, and ultimately move rates up as the market normalizes, is an obvious advantage.