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meetings . Interestingly , municipalities have influenced the group meeting activity through local ordinances and restrictions placed on meeting size . Hotels that have maintained food and beverage operations , and those that also accommodate groups , have fared better than the industry in total .
We also surveyed participants to gauge their plans for increases to occupancy and ADR . Over 51 % of the respondents indicated that they anticipate increasing occupancy in their 2022 budgets by anywhere from 0 to 10 percentage points .
For ADR , nearly 70 % of the respondents are budgeting increases ranging from 9 % to 10 % in 2022 . This is not surprising considering the ADR gains observed in 2021 .
Finally , the operational challenges facing owners today seem more severe than almost any other period in our recorded lodging history . While we are confident that the hotel industry will persevere , the COVID-19 pandemic is cited as causing the most concern amongst hotel owners and operations . The second greatest challenge for U . S . hoteliers is the challenge to secure adequate labor . Unfortunately , during the downturn , many hotel employees left the industry for work in other businesses . While this does not bode well for the industry during the short term , it certainly motivates owners and operators to find creative solutions in providing service and amenities that are congruent with the relationship between price and value .
Of those surveyed who responded “ yes ” when asked if they were receiving group reservations for 2022 , leisure groups comprised the largest ( 29 %) slice of the group meeting pie . Second was corporate group at 13 %. Association group was last and only 1 % indicated convention business was booking in 2022 .
In conclusion , optimism remains prevalent in the industry . Investment sales continue and that may be the greatest indicator that seasoned investors and new entrants into the lodging sector see value . As 2022 approaches , hoteliers are faced with challenges once again as they were in 2001 and 2008 and arguably many times prior . We have confidence that operators and investors will move forward with resolve in finding that very fine balance between the price of a guest room , the cost of a guest room , and the cost of providing services in 2022 and beyond .
80 hotelsmag . com November / December 2021