Sell for More Trivia is a weekly blog series that playfully presents a trivia question about commercial real estate.
Hotel revenues per room are projected to fall a whopping 58% in 2020. We have the government lock down to thank for that.
The sudden disappearance of tourism, conference traffic and nonessential business travel has left hotels reeling.
Data analytics company STR does not expect the national hotel business to fully recover in 2021. It forecast only a 48% increase in revenue-per-available room in 2021 compared to this year’s dismal figures. It also anticipated that it could take until 2023 until hotels see the same demand they had in 2019.
“The rate of recovery will be slow even as distancing measures are eased and the country reopens,” said STR’s president. “Concerns around the safety of travel and leisure activity will dictate how long it takes the industry to regain its footing.”
On the bright side, she also said the weekly data suggests the industry has already hit rock bottom…and has started a slow ascent. She said luxury travel would likely be the first to return, with business travel lagging behind.
The hotel business nationally must make a long slow ascent to get back to where we were just a few short months ago. However, this pain will not be spread evenly. We expect strong markets like Nashville and South Florida to roar back to life while others will have to wait until 2023.
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About Beau Beach, MBA CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee and South Florida markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 800-721-3287, click to schedule a call or Beau@BeachwoodSells.com