U.S. hotel leisure travel revenue is projected to end 2022 14 percent above 2019 levels, while hotel business travel revenue is expected to come within 1 percent of 2019 levels, according to a new analysis released today by the American Hotel & Lodging Association and Kalibri Labs.
The projections are not adjusted for inflation, and real hotel revenue recovery will likely take several more years.
This latest analysis is an improvement over April's forecast, which projected U.S. hotel business travel revenue would be 23 percent below prepandemic levels in 2022 and would end the year down more than $20 billion compared to 2019. Hotels lost an estimated $108 billion in business travel revenue during 2020 and 2021 combined.
Postpandemic recovery remains uneven, particularly in many major cities and destinations where business travel continues to lag. Among the top 50 U.S. markets, 80 percent are projected to see hotel leisure travel revenue exceed 2019 levels, but only 40 percent are expected reach that milestone for business travel revenue.
Many urban markets, which rely heavily on business from events and group meetings, are still on the road to recovery.
Here are how the top 10 markets for hotel business and leisure travel revenue are projected to fare this year:
“The hotel industry continues its march toward recovery, but we still have a way to go before we fully get there,” AHLA President & CEO Chip Rogers said in a statement. “That’s why AHLA remains focused on working with members, lawmakers and stakeholders in markets that are rebounding more slowly to ensure the full return of meetings, conferences and group travel in addition to leisure and business travel. At the same time, we are continuing to grow the industry’s talent pipeline by highlighting the unprecedented career opportunities hotels are offering.”