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Hotels’ recovery continues, workforce challenges remain

AHLA’s 2022 Midyear State of the hotel industry forecasts 2022 nominal room revenue, state and local taxes will exceed 2019 levels.

WASHINGTON – Midway through 2022, the hotel industry continues to make strides toward recovery, with nominal hotel room revenue and state and local tax revenues projected to exceed 2019 levels by the end of this year, according to the American Hotel & Lodging Association (AHLA)’s 2022 Midyear State of the Hotel Industry Report

Hotel room revenue is projected to surpass $188 billion by the end of 2022, eclipsing 2019 figures on a nominal basis. When adjusted for inflation, however, revenue per available room (RevPAR) is not expected to surpass 2019 levels until 2025. Hotels are projected to generate nearly $43.9 billion in state and local tax revenues this year, up almost 7% from 2019 levels.

AHLA’s 2022 Midyear State of the Industry Report includes updated forecasts and trends on hotel performance and investment and traveler sentiment. It is based on data and forecasts from Oxford Economics, AHLA Platinum Partners STR and Avendra and Silver Partner JLL, and survey research commissioned from Morning Consult.

Key findings include:

  • Hotel occupancy is expected to average 63.4% in 2022, approaching pre-pandemic levels
  • Hotel room revenue is projected 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 projected 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 so in the future

“After a tremendously difficult two and a half years, things are steadily improving for the hotel industry and our employees. This progress is testament to the resilience and hard work of hoteliers and hotel associates, who are welcoming back guests in huge numbers this summer,” said AHLA President & CEO Chip Rogers. “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.”

Like many industries, hotels continue to face a major workforce shortage that could impact recovery. In 2019, U.S. hotels directly employed more than 2.3 million people, according to Oxford Economics. This report forecasts that hotels will end 2022 with 1.97 million employees, or 84% of pre-pandemic levels. The hotel industry is not expected to reach 2019 employment levels until at least 2024. According to a May 2022 AHLA survey, 97% of hotels indicated they are experiencing a staffing shortage, 49% severely so. 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.

Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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