DECEMBER 2021 TOWN HALL RECAP
MAPPING THE HOSPITALITY INDUSTRY ’ S RECOVERY
BY KIRSTEN CLODFELTER
THE WEEK OF APRIL 7 , 2020 — just weeks after the WHO declared Covid-19 a pandemic and the United States issued a national emergency — was the single worst the U . S . hotel industry has ever experienced . Yet at December ’ s ISPA Town Hall , when National Director of Hospitality Analytics for CoStar group Jan Freitag broke down the data and shared the forecast for the year ahead , the picture was a resoundingly hopeful one . In this panel , Freitag and ISPA Foundation Board Chair Frank Pitsikalis discussed the pandemic ’ s biggest disruptions and what recovery across the industry will look like next year and in the years ahead .
Despite Disruption , Data Indicates Recovery Predictably , hotel occupancy fell in 2020 , especially early in the pandemic as people cancelled flights and followed safer-at-home recommendations , unsure of what to expect . Yet the recovery throughout 2021 has seen a steady uphill climb .“ Recovery is ongoing , no doubt about it . Travel is here and is here to stay ,” Freitag noted .“ What we ’ re seeing is that occupancies
are actually coming back quite nicely .”
At 2020 lows , occupancy fell to less than 50 percent of the previous year . By the end of 2021 , however , this gap was predicted to close considerably , rising to just under 20 percent . For 2022 , occupancy rates are forecast to return to nearly 2019 levels , at just under 4 percent .
It isn ’ t just occupancy that ’ s trending upward , either . RevPar ( revenue per available room ) and ADR ( average daily rate ) are similarly following a positive trajectory , with full recovery anticipated by 2023 . Freitag explained ,“ In the summer of this year , we ’ ve just come back guns blazing , so to speak , and room rates are in some instances at an all-time high .”
Inflation and Labor Tell a More Complete Story This data is reassuring , but as ISPA Foundation Board Chair and Town Hall Moderator Frank Pitsikalis reminded the audience ,“ Looking at a raw figure doesn ’ t tell the whole story .”
Freitag provided additional context : “ The inflation rates are so strong that they really eat into what the
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