Economic conditions are deteriorating quickly with the Covid-19 outbreak causing a sharp drop in economic activity.
- CBRE expects GDP growth will slow to 0.4% in 2020.
- U.S. RevPAR will decline by 37% in 2020, with a contraction of more than 60% in Q2.
- Demand will decline by 28% in 2020; ADRs are expected to decline 11% in 2020.
- The most complex constraint impairing travel comes from social distancing efforts and travel or group gathering restrictions on global populations.
- Properties that primarily cater to discretionary travel will be affected most, i.e. luxury, upper upscale, urban, airport, and resort properties.
CBRE Hotels Research has released a preliminary 2020 forecast that analyzes the impact of the pandemic on hotel performance and provides insight as to how hotels may start to recover in the back half of the year.
Senior Managing Economist
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Marketing & Client Services Manager
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