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COVID Briefs: State of the industry | Confidence in business travel grows

AH&LA forecasts state of the industry

The American Hotel & Lodging Association (AHLA) today released “AHLA’s State of the Hotel Industry 2021,” a report outlining the forecasted state of the hotel industry in 2021 and into the immediate future. The report examines the high-level economics of the hotel industry’s recovery, the specific impact on and eventual return of business travel, and consumer travel sentiments. Business travel, which comprises the largest source of hotel revenue, remains nearly nonexistent, but it is expected to begin a slow return in the second half of 2021. Leisure travel is expected to return first, with consumers optimistic about national distribution of a vaccine and with that an ability to travel again in 2021.

Read the full report

Confidence grows for a return to business travel

The Global Business Travel Association has released the results from its 15th coronavirus poll, the first in 2021, to measure the impact on business travel following the onset of the pandemic last year. The latest survey finds that more than half of respondents expect most of their employees will return to the office by Q3, in line with a return to non-essential business travel and a growth in traveler confidence. Plans to resume non-critical business travel follow a similar trajectory as returning to the office. One in 10 (13%) report they expect employees to resume non-critical business travel in the next one to four months and one in three (29%) expect this travel category to resume in five to eight months. 

Read the results

U.S. occupancy climbs back to 40%

U.S. weekly hotel occupancy climbed back to the 40% mark, according to STR’s latest data through January 16.   

January 10-16 (percentage change from comparable week in 2020):

Occupancy: 40.1% (-31.8%)

ADR: US$89.39 (-31.9%)

RevPAR: US$35.85 (-53.6%) 

Aggregate data for the top 25 markets showed lower occupancy (38.4%) but higher ADR (US$95.94) than all other markets. Among the top 25 markets, Tampa/St. Petersburg, Florida (53.8%), reported the highest occupancy level. Top 25 markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (22.1%), and Minneapolis/St. Paul, Minnesota-Wisconsin (27.0%).

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