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Room Night Distribution Trends

The relative strength of leisure travel, combined with weakness in corporate and group travel, has led to shifts in the distribution of room night demand relative to pre-pandemic norms. The increased percentage of leisure travelers led to growth in reservations made through OTAs (Online Travel Agencies) and property direct bookings, while weakness in corporate and group business led to declines in the percentage of bookings made via group and GDS (Global Distribution System) channels. Business travel has been picking up, although group demand and international travel have been slower to return. As of Q1 2022, total room night demand for U.S. hotels was 89% of that achieved in Q1 2019. Additionally, year-to-date TSA passenger throughput has been holding steady near 90% of 2019 levels. Despite downward pressure on economic growth caused by record inflation, rising gas prices, and the substantial pull-back in the S&P 500 since January, the hotel recovery continues. Overall, group and business travel have improved significantly in recent quarters, resulting in Q1 2022 distribution ratios that are more in-line with pre-pandemic levels, as shown below.

U.S. Hotels Q1 2022 – All

Source: CBRE Hotels

Room Nights by Source of Business

Source: CBRE Hotels

CBRE Hotels Advisory is a specialized group within CBRE providing capital markets, consulting, investment sales, research, and valuation services to companies across the hotel sector. CBRE Hotels is comprised of more than 385 dedicated hospitality professionals located in 60 offices across the globe.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Branden T. White
Vice President CBRE
CBRE Hotels

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