The COVID-19 Delta variant's emergence and spread has hampered plans for group and business travel this fall and winter, spurring CBRE Hotels Research to temper its expectations for the US lodging sector's Q4 performance on a national basis.
CBRE's new outlook extends into 2022, given the likelihood that corporate travel budgets will remain constrained next year.
Earlier this year, the lodging outlook had been brighter due to strong leisure demand, boosting summer occupancy levels beyond expectations at US hotels. But the emergence of the Delta variant sapped momentum from more lucrative business travel, giving rise to a concerning "second-derivative" market condition in which the recovery continues but at a slowing pace.
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