Executive Summary

  • Hotel fundamentals softened in Q2, largely due to a 1.5% year-over-year drop in occupancy. The average daily rate (ADR) increased by 2.6% year-over-year, its slowest annual growth since Q1 2021. Revenue per available room (RevPAR) increased by just 1.1% year-over-year, a material slowdown from Q1's 15.9% pace.
  • Total inbound foreign visitors were 27% below pre-pandemic 2019 levels, while the number of Americans traveling to Europe and the Caribbean increased by 5% and 8%, respectively.
  • Hotel wage growth slowed in June but at 5.2% outpaced the national average of 4.7%. Hotel wage growth pressures are likely to persist, at least for the near term.
  • Leisure markets remained the strongest RevPAR performers relative to 2019; however, Q2 RevPAR declined from last year in several of them, including West Palm Beach, Savannah, Phoenix and St. Petersburg.
  • Occupancy rates for all location types were below 2019 levels in Q2. Urban locations were the only category to post year-over-year gains, with the other five location types contracting vs Q2 2022.
— Source: CBRE Hotels— Source: CBRE Hotels
— Source: CBRE Hotels
— Source: CBRE Hotels— Source: CBRE Hotels
— Source: CBRE Hotels
— Source: CBRE Hotels— Source: CBRE Hotels
— Source: CBRE Hotels

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About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.