Annual Hotel Demand Drops by 37% in 2020
- U.S. hotels suffered the worst annual occupancy level in 2020 since the Great Depression in the 1930s.
- Social distancing continues to constrain group demand. Convention hotels suffered the greatest declines in profits.
- Leisure travelers remain the most dependable source of demand for U.S. hotels.
- Cuts to corporate travel budgets have limited business travel. This is expected to mute corporate demand in the near future.
- Lower-priced hotels continued to have the least severe declines in occupancy, but occupancy levels remained below 50%.
- Smaller markets and mainland U.S. resort destinations had the smallest declines in RevPAR in 2020. These less-dense markets benefited from their ability to better maintain social distancing and from their drive-to destination appeal.
- The biggest declines in RevPAR in 2020 occurred in the larger gateway markets. These markets suffered from the lack of group demand, fewer inbound international travelers and a reliance on airline travel.