CAIA Blog: Hotel Outlook - The Struggle Is Real - August 17, 2021
August 2021 - Real Estate
To access the post click here.
During the depths of the COVID-19 crisis in 2020, the world’s largest traditional hotel chain, Marriott International, reported that the pandemic had “a more severe and sustained financial impact on Marriott’s business than 9/11 and the 2008 financial crisis, combined”[i]. According to metrics compiled by STR, occupancy in 2020 fell 33.3% from 2019’s level to 44%. Average daily revenue (ADR) dropped 21.3% to $103.25. Revenue per available room (RevPAR) declined 47.5% to $45.48[ii]. It’s no surprise that the American Hotel and Lodging Association (AHLA) reported that the sector has lost nearly 5 million jobs and the economic impact on the industry was “nine times greater” than the September 11 attacks[iii]. The year was just as bleak in most Asian and European markets, where we saw similar—and in some cases, more severe—impacts from COVID-19.
To access the post click here.