The hotel industry will continue moving toward recovery in 2022, but the path will be uneven and potentially volatile, and full recovery is still several years away, according to the American Hotel & Lodging Association (AHLA)’s 2022 State of the Hotel Industry report.
The report, which reveals shifts in consumer and business sentiment, was created in collaboration with AHLA Silver Partner Accenture and is based on data and forecasts from Oxford Economics and AHLA Platinum Partner STR.
The top findings of the report include:
• Hotel occupancy rates and room revenue are projected to approach 2019 levels in 2022.
• The outlook for ancillary revenue, which includes food & beverage and meeting space, is less optimistic.
• Hotels lost a collective $111.8 billion in room revenue alone during 2020 and 2021.
• Leisure travelers will continue to drive recovery: in 2019, business travelers made up 52.5 percent of industry room revenue; in 2022, it is projected to represent just 43.6 percent.
• Business travel is expected to remain down more than 20 percent for much of the year, while just 58 percent of meetings and events are expected to return. The full effects of Omicron are not yet known.