2021 State of the Industry: Partner Trends & Insights Report

The 2021 AHLA report highlights that the U.S. hotel industry endured its most challenging year in 2020, with occupancy dropping to 24.5% in April and a projected 52% average in 2021, significantly below pre-pandemic levels. While hotel employment is forecasted to increase by 200,000 jobs in 2021, industry employment remains nearly 500,000 jobs below 2019 figures, with full recovery delayed until at least 2023 or 2024.

Hotel revenue, tax contributions, and occupancy rates are expected to gradually improve, supported by consumer optimism—56% plan leisure travel—and widespread vaccination efforts, which are deemed vital for restoring consumer confidence. Enhanced hotel safety protocols and cleanliness, driven by initiatives like AHLA’s Safe Stay, remain central to rebuilding guest trust amid ongoing pandemic challenges, with hotel performance and employment projected to recover significantly more slowly for business and group travel segments.