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The summer of 2022 was defined by “revenge travel,” and this year is shaping up to be even bigger, as consumers continue with a “live for now” mentality.
CBRE last week once again lifted its forecast for hotel performance, thanks to demand being stronger than expected.
“At the height of the pandemic, we saw a massive loss of life … a lot of folks throughout the country, their priorities have shifted to realize just how fragile today is,” Donohoe Hospitality President Thomas Penny said on the Bisnow Reports podcast this week. “You have folks who will pay a premium to make certain they will make the most of the day.”
CBRE increased its forecast for average revenue per available room, the hotel industry’s leading performance metric, to nearly $98 a night nationally, a 6% jump from its previous prediction.
On the podcast, Penny talks about adapting the business to make the most of so-called “bleisure travel,” recruitment and retention amid the labor crisis and his concern about the debt ceiling.
“While we do not see anything to remotely suggest a recession in our future bookings, what I will say is we are really concerned about what is happening on the Hill in terms of the debt ceiling discussion,” he said. “We have a chance to create another crisis, just as a result of folks not being able to get their work done and their job done.”
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