While the hospitality industry has been going through challenging times since the pandemic began, we’ve been hearing positive news at recent industry conferences. At the Lodging Conference, there were some very interesting presentations on trends, construction, and what the future holds.
We want to share some highlights from a presentation by HVS on its outlook for the hospitality industry (www.hvs.com). Let’s start by talking about revenue per available room (RevPAR), which is calculated by multiplying a hotel’s average daily room rate by its occupancy rate.
• According to HVS, approximately 45% of RevPAR lost during 2020 should be recovered by the end of this year. Full RevPAR recovery is anticipated by 2024.
• Local markets with the fastest growing RevPAR year-to-date 2021 include Norfolk/Virginia Beach, Tampa, St. Louis and Miami. Slowest growing RevPAR markets include San Francisco/San Mateo, New Orleans, Oahu and Washington, D.C.
• Some hotels brands and markets are already on the road to recovery, including leisure segments and destinations – from beaches to national parks. Smaller markets and properties affiliated with strong brands are also recovering.
• Corporate markets are taking longer to recover, impacting full-service hotels and resorts dependent on conventions and large groups for revenue. Hotels that cater to international travel and airport locations are still being impacted by travel restrictions.
In fact, a recent article in Hotel News Now mirrored that projection, saying major U.S. convention markets are unlikely to match pre-pandemic performance. “Fall convention numbers may be off by between 50% and 75% at traditional U.S. meetings destinations, as many businesses and associations have opted to delay annual events until 2022.”
While some segments are taking longer to recover than others, multi-million dollar transactions in the hospitality industry continue, as do new builds and renovations. FSN-Hospitality makes it easy to find, vet, and hire skilled finishing contactors. From floors to ceilings, windows to drywall, contact us today at (410) 564-5876 or sales@FinishingSolutionsNetwork.com to discuss your projects.