Businessmen and tourists traveling to the United States in 2023 will have to dig into their wallets more to pay for their hotel room. This is the conclusion of a report by the American consultant CBRE Hotels Research. According to the consultancy firm, the RevPAR growth rate (recipe per room available) will increase in 2023 by 5.8%. It is the consequence of a expected a 1.6% increase in the occupancy rate, combined with a 4.2% increase in the average room rate.
This increase in room rates is the result of a continued recovery in travel to the United States, which this year should be fueled by the return of the largest Asian markets, China, South Korea and Japan.
So according to CBRE, the hotel market would escape the possible recession that the United States would enter in 2023. According to economic experts, the country should record a slight contraction in GDP of around -0.2%.
Strongest growth in major urban markets
More bad news for travellers. The increase will be strongest in major markets. Out of 65 major markets selected by CBRE, the RevPAR increase would be 8.6% in 2023. This figure should compare to the average growth rate of 5.8% projected for the entire market. The prospects for 25 largest US markets they are even better. RevPAR in these markets is projected to increase 9.3% in 2023.
By segment, high-end hotels will see stronger growth than RevPAR in 2023 in major US markets. Revenues are therefore expected to grow in large cities by 10.2%, compared to 4.4% for budget hotels and 7.6% for mid-range hotels.
The growth of the hotel offer of 2.1% in 2023 in the high-end segment should not have a real influence on prices. The offer in mid-range hotels should increase by 2% and in the economy segment by 0.1%.
According to CBRE Hotels Research, by the end of 2023, 53 of 65 major markets selected by consultant are expected to meet or exceed 2019 RevPAR levels. The regions where recovery will be slowest, according to CBRE, are Northern California, the Upper Midwest around Chicago/Minneapolis, and from Washington to New York. On the other hand, the largest increases in RevPAR would be observed in Savannah (Georgia), Miami and Saint-Petersburg (Florida) and in the Coachella Valley in California.
