U.S. Hotel RevPar to Drop in 2021, Lending Terms Change
According to the March 2019 edition of CBRE’s Hotel Horizons forecast report, RevPAR growth for the U.S. lodging industry will be limited to under 2.5 percent through 2020. Further, CBRE is projecting a 0.6 percent decline in RevPAR for 2021 as CBRE expects the economy to slow down during the year. The combination of modest increases in revenue and rising operating expenses (especially labor) make hotel owners and operators nervous about their ability to enjoy profit growth in the next few years.