Hospitality, by far, was hit the hardest by the pandemic. Occupancy rates and RevPar (revenue per available room) dropped to record lows as almost everyone stayed home for more than a year. However, with the world opening back up, we’re seeing a huge rebound in this space. In our June 2021 livestream, Chief Investment Officer Ian Formigle broke down how the hospitality space is reacting to the faster-than-anticipated recovery. With travel rebounding quickly, the pricing discounts available to inventors in 2020 are rapidly disappearing, but we suspect that we’ll see a recovery on par with 2019 levels as soon as 2023.
Learn more about our outlook for hospitality real estate in our CRE Market Outlook.