Signs that the hotel industry is still lagging its pre-Covid levels are evident in CBRE's October review of the state of the sector. Revenue per available room (RevPAR) continued to slip as did hotel loan originations.

Hotel occupancy fell 1.7% in August, precipitating a 0.7% drop in RevPAR that followed a 1.2% drop in July, as CBRE reported previously. Urban hotels did show a 3.7% growth in RevPAR, but still did not reach 2019 levels. "The spread between real and nominal RevPAR increased to 17.3 p.p. in August versus 14.1 p.p. in August of 2022," CBRE noted, adding that the pace at which this is happening appears to have slowed.

While total revenue grew 2.5% in July – outpacing RevPAR growth – gross operating profit margins slipped 1.8 p.p. and profit dropped 2.5% year over year.