According to the American Hotel & Lodging Association (AHLA)’s 2022 Midyear State of the Hotel Industry Report, the nominal hotel room revenue and state and local tax revenues are projected to exceed 2019 levels by the end of this year.
Even midway through 2022, the hotel industry is still recovering.
By the end of 2022, hotel room revenue is estimated to surpass $188 billion overshadowing 2019 figures on a nominal basis. However, the revenue per room available (RevPAR) is not expected to exceed 2019 levels until 2025. Altogether, hotels are expected to generate nearly a revenue of $43.9 billion in state and local tax this year which is 7% more than in 2019.
The report also includes updated forecasts and trends on hotel performance and investment and traveler sentiment. This data and forecasts have been calculated by Oxford Economics, AHLA Platinum Partners STR and Avendra, and Silver Partner JLL, and survey research commissioned from Morning Consult.
The key findings include:
- Hotel occupancy is expected to average 63.4% in 2022, approaching pre-pandemic levels
- Hotel room revenue is predicted to reach $188 billion by the end of this year, surpassing 2019 levels on a nominal basis
- By the end of 2022, hotels are expected to employ 1.97 million people—84% of their pre-pandemic workforce
- Hotels are made to generate $43.8 billion in state and local tax revenues in 2022, up 6.6% from 2019
- 47% of business travelers have extended a business trip for leisure purposes in the past year, and 82% say they are interested in doing the same in the future
According to AHLA President & CEO Chip Rogers, “After a tremendously difficult two and a half years, things are steadily improving for the hotel industry and our employees. This progress is a testament to the resilience and hard work of hoteliers and hotel associates, who are welcoming back guests in huge numbers this summer”
“While these findings highlight the important role hotels play when it comes to creating jobs, spurring investment, and generating tax revenue in communities across the country, they also underscore the lingering challenges posed by one of the tightest labor markets in decades. That’s why both AHLA and the AHLA Foundation are focused on helping hoteliers fill open positions.”
The hotel industry continues to face an employee shortage that could affect the recovery. In 2019, According to cording to Oxford Economics, the US employed more than 2.3 million people. This report concludes with the prediction that by the end of 2022 hotels will have 1.97 million employees or 84% of pre-pandemic levels. The hotel industry is still expected to reach 2019 employment levels by the year 2024.
According to a May 2022 AHLA survey, 97% of hotels indicated that they are going through a staffing shortage, 49% severely. Survey respondents indicated they had hired an additional 23 employees per property in the last three months but were also trying to fill an additional 12 positions.
The AHLA Foundation’s new national ad campaign, “The Hotel Industry: A Place to Stay,” aims to help sew the employment gap while introducing job seekers to the 200+ career pathways and many perks the hotel industry offers.
About AHLA
The American Hotel & Lodging Association (AHLA) is the sole national association representing all segments of the U.S. lodging industry. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support, and workforce development programs to move the industry forward. Learn more at www.ahla.com.
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