US Hotels State of the Union - July 2022

Key Takeaways

• New this month – nominal consumer credit card balances are at an all-time high, and at a ratio of 2 to 1, the number of job openings to job seekers is the highest in 20 years.
• ⎻ Macroeconomic indicators are softening. CBRE forecasts a steep decline in GDP growth. Inflation is expected to remain elevated through the end of the year, and unemployment is expected to increase.
• For now, ADR continues to outpace elevated inflation levels, however, we expect ADR growth to moderate in the second half of the year and beyond.  
• June RevPAR growth continued to exceed 2019 levels for the fourth month in a row because of strong leisure travel and high ADR growth. All location types exceeded 2019 RevPAR levels except for urban hotels.
• Internaonal outbound expenditures have continued to rise as inbound expenditures have dropped off because of a strong dollar. Geographic disparities remain as international travel continues to rebound. Inbound international travel remains strongest in the East, but the West Coast is gaining steam.
• Short-term rental demand has normalized. Similarly, to hotel markets, southern leisure drive to markets are outperforming urban markets. 
• Brand.com continued to gain market share during Q2 from 19% to 21% compared to 2019. 

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