U.S. HOTELS FORECAST that their properties will exceed 2022 budgeting targets as the hospitality industry returns to normal, according to a survey by the Hospitality Asset Managers Association. The HAMA survey found a renewed sense of optimism among members.
The Fall 2022 Industry Outlook survey revealed that around 60 percent of respondents believe most of their portfolios, more than 75 percent, will exceed 2022 budgeted RevPAR.
Nearly half of participants expect 75-100 percent of their properties to exceed 2022 budgeted GOP, the survey said. Around 60 percent of full-service and above said that they expect to exceed 2022 budgeted GOP and just over 40 percent of select-service and below hotels forecasted to exceed 2022 budgeted GOP.
According to the survey, 86.76 percent of asset managers currently are most concerned about labor availability while labor costs topped the concerns of 85.29 percent and demand worried 42.64 percent. Just under 50 percent of those surveyed believe industry RevPAR levels as a whole will return to 2019 levels by 2023, while approximately 40 percent predict it will occur in 2024.
Nearly 80 percent of respondents said that they are actively seeking acquisition opportunities.
“According to our membership, the future looks bright for the hospitality industry, with the majority of participants forecasting that their properties will exceed 2022 budgeting targets,” said Matthew Arrants CHAM, president, HAMA and principal at The Arrants Company. “Regardless of the category, our folks are optimistic. While labor remains a major concern, very few of our members were forced to hand back keys even during the worst of the pandemic, and that number looks to decrease sooner than later. Moreover, the acquisition market seems to be heating up, as well. Shy a black swan event, 2023 already is shaping up to be a strong year for the hospitality industry.”
U.S. members of HAMA represent more than 3,500 hotels and resorts across every major brand, accounting for 775,000 hotel rooms, 250,000 employees, $40 billion in annual revenue and $3 billion in capital expenditures.
In total, 68 asset managers, comprising approximately one-third of membership, participated in the survey.
A HAMA survey, two years ago, revealed that most asset managers expected declines in RevPAR until 2023.
