Summertime, and the living was easy for many hotels. Then came July. Though officially still summer, the sun seemed to shine a little less brightly on less-pricey hotels. And a new forecast from CBRE indicates continuing overcast ahead with signs of growing property distress and lower growth.
As the season opened, consumers had money to travel as wage growth outpaced room pricing, and falling airfares encouraged them to do so, according to CBRE's September update on the hotel industry.
In July, however, revenue per available room (RevPAR), a key performance measure, fell 1.2% on declining occupancy to 2.1%, despite a modest 1% gain in the average daily rate (ADR), another key performance indicator.
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