April 7, 2020
Over the past decade, the U.S. hospitality sector has experienced unprecedented growth in RevPAR and occupancy—growth which the coronavirus pandemic’s restrictions on travel have put on pause. However, Marcus & Millichap sees the sector rebounding.
“While present restrictions are impeding the hotel sector, the industry will recover,” according to a special report on lodging from Marcus & Millichap. “Such was the case after both the events of Sept. 11, 2001, and the 2008 financial crisis.”
Beyond the pandemic, “long-term demand trends remain positive,” the report states. “When normal activities resume, they will create an immediate need for lodging.”
The report notes that following 9/11 and the financial crisis, ADR took twice as long to recover as it did to bottom out. “The pace of recovery could be different this time, though. Much will depend on the duration of the pandemic, and how extensively it affects the broader economy.”
For comments, questions or concerns, please contact Paul Bubny