by Donald Wood
Last updated: 11:00 AM ET, Wed July 27, 2022
Data from a new study shows the hotel industry continues to make progress toward recovery in 2022, with 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, 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 seven percent from pre-pandemic totals.
"After a tremendously difficult two and a half years, things are steadily improving for the hotel industry and our employees," AHLA President Chip Rogers said. "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."
"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," Rogers continued. "That's why both AHLA and the AHLA Foundation are focused on helping hoteliers fill open positions."
Data suggests that by the end of 2022, hotel occupancy is expected to average 63.4 percent and properties are expected to employ 1.97 million people. The hotel industry is not likely to reach 2019 employment levels until at least 2024.
The survey also found that 47 percent of business travelers have extended a business trip for leisure purposes in the past year, and 82 percent say they are interested in doing so in the future.
Earlier this month, the AHLA welcomed Preferred Hotels & Resorts as a new member.
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