Spotlight on the US Market Looking more specifically at the US market as a possible indicator of more global trends, CBRE reported in July that they continue to reduce cumulative GDP forecasts, this time by 5.3 percentage points, citing the impact of inflation among other factors creating elevated risk.
Figure 1. Since hotel forecasts were published in May, CBRE EA’s GDP outlook softened
CBRE EA’s GDP Forecasts by Release Month vs. Current Demand Growth Forecast Y-o-Y Change (%)
12
9.1%
8
5.9%
4.6%
4.5%
3.5%
3.1%
4
3%
2.1%
2%
0.2%
2022F 2023F • January • March • May • June • Demand Growth Forecast*
CBRE Hotels Research, CBRE EA *Represents CBRE’s Demand Forecast as of May 16
In February 2022, IACC member venues surveyed in the US, gave a conservative prediction that it would take until 2024 to reach 2019 revenue levels for group business. However, by late May during polling the IACC Americas members conference in Las Vegas, the widely held opinion of conference hotel operators was that 2019 levels could be beaten as soon as early 2023, a full year earlier.
06
IACConline.org
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