weather, hotel bookings have begun to mildly slacken. SUMMER TO AUTUMN TRANSITION REVEALS SEASONAL WALK BACK IN VISITATION. From the start of August into the first weekend of October occupancy followed its traditional pattern, declin- ing 630 basis points to 61.7 percent. The reduction was largely seasonal, with the start of in-person schooling limiting travel for many families. For the same window in 2019, occupancy fell by a similar 600-basis-point mar- gin. Rising COVID-19 infection rates tied to the delta variant may have also weighed on travel plans. Of the areas reporting steep climbs in cases, many were also favored vacation spots. Moving into 2022 hotel room demand nationally will likely follow typical sea- sonal patterns while trailing pre-pan- demic levels by a shrinking margin. Property performance will still vary significantly by location and service level, however. LEISURE DEMAND STILL DOMINANT IN 2022. Hotels in popular vacation des- tinations are projected to perform best next year, including those near beaches and parkland. These types of settings, including the Florida Keys, Colorado Springs and Virginia Beach, captured the most demand during the spring and summer. Hotels in drive-to locations reliant on regional vacationers will contin- ue to draw travelers; however, they may lose some guests to more well- known areas as peoples’ comfort with flying improves and barriers to international travel lighten. There- fore, while leisure travel is expected to grow further in the coming year, room demand may be more diffused across markets as the overall econo- my will be more widely open.
Hotel Outlook Remains Bifurcated in 2022
WILL INVESTMENT DEMAND SURGE BACK?
by John Chang
SUMMER VACATIONS JUMP-STARTED RECOVERY.
2019 volumes, while hotel occu- pancy had roughly doubled from where it began 2021. Nightly rates improved even more notably, with the average daily rate for July sur- passing the same metric from two years prior by 6 percent. Although partially mitigated by inflation, the rapid recovery in ADR underscored the strong demand to get away that manifested earlier this year. As the calendar advanced into the start of the academic year and colder
The U.S. lodging sector entered the autumn season having made up substantial ground during the spring and summer months. Loos- ened capacity restrictions, vac- cine availability and pent-up travel demand led to a marked increase in trips taken and rooms occupied. By the end of July foot traffic through airport security checkpoints had recovered to about 80 percent of
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