2022 Midyear State of the Industry Report

The American Hotel & Lodging Association's 2022 Midyear State of the Hotel Industry Report highlights the industry's ongoing recovery post-pandemic. Key insights include a projected average hotel occupancy of 63.4% for 2022, nearing pre-pandemic levels. Nominal hotel room revenue is expected to surpass 2019 levels, reaching $188 billion, although real RevPAR might not rebound fully until 2025. Employment in the hotel sector is set to rebound to 1.97 million jobs, approximately 84% of the pre-pandemic workforce. Additionally, hotels are projected to generate $43.8 billion in state and local tax revenues, reflecting a 6.6% increase from 2019.

Emerging travel trends like bleisure—combining business and leisure travel—and the rise of digital nomads are altering the market landscape. In 2022, 47% of business travelers extended trips for leisure, with 82% expressing future interest. This shift is prompting hotels to adapt their offerings to meet evolving guest needs. Investment in the hotel sector remains robust, with the first half of 2022 seeing record transaction volumes. Despite economic uncertainties, the sector's resilience is expected to spur continued investment and growth, albeit with challenges in workforce recovery and operational costs due to rising prices.