Business and leisure travellers to the United States in 2023 will have to dig deeper into their wallets to pay for their hotel rooms. This is the conclusion of a report by the American consultancy CBRE Hotels Research. According to the consultancy, the RevPAR growth rate (revenue per room available) will rise in 2023 from 5.8%. It is the consequence of a an expected 1.6 % increase in occupancy, combined with a 4.2 % rise in the average room rate.
This increase in the price of overnight stays is the result of a continued recovery in travel to the United StatesThis year, it should be fuelled by the return of the major Asian markets - China, South Korea and Japan.
According to CBRE, the hotel market would escape the possible recession that the United States could face in 2023. According to economic experts, the country's GDP is set to contract slightly, by around -0.21TP3Q.
Stronger growth in major urban markets
More bad news for travellers The rise will be stronger in the major markets. In 65 major markets selected by CBRE, the increase in RevPAR would be 8.6 % in 2023. This compares with an average growth rate of 5.8 % forecast for the market as a whole. The outlook for 25 largest US markets are even better. RevPAR on these markets should increase by 9.3 % in 2023.
By segment, top-of-the-range hotels will record stronger RevPAR growth in 2023 in the main US markets. Revenues in major cities are expected to rise by 10.2 %, compared with 4.4 % for hotels in the economy segment and 7.6 % for mid-range hotels.
The 2.1% increase in hotel supply in 2023 in the top end of the market should have no real impact on prices. Supply 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 the 65 main markets selected by the consultant should have reached or exceeded their 2019 RevPAR levels. According to CBRE, the regions where the recovery will be slowest are northern California, the upper Midwest around Chicago/Minneapolis and from Washington to New York. On the other hand, the biggest increases in RevPAR will be seen in Savannah (Georgia), Miami and St Petersburg (Florida) and the Coachella Valley in California.
