Covid and Hotel Industry, Gains and losses
Comparing the most recent data from IBIS World, the hotel industry’s performance witnessed a revenue downfall from 2019 to 2020 by 55.84 percent. Between the years 2020 and 2021, the revenue increased by 42.9 percent. The other year is revenue slightly normalizing back to the values of the year 2019.
The employment count within the hotel industry witnessed a downfall from 2019 to 2021 by 34.50-percent. Between the years 2020 and 2021, employment increased by 22.2 percent. The other year is revenue slightly normalizing back to the values of the year 2019.
Average Daily Rate
Concerning Illinois, the 12-month average asking rate dropped from $89.5 in 2020 to about $73.8 a room per night, which is more than a 20-percent decrease. According to CoStar, ADR should increase steadily until 2023, up to $95 a room per night.
The occupancy in Illinois dropped from about 55 percent by the end of 2019 to about 33 percent by the February of 2021. MMCG Invest expects to increase occupancy in Illinois back to 55 during the year 2022:
However, even when occupancy and average asking rate, according to mentioned sources, mean to grow, inflation (currently 8.6 percent annually) seems to be a risk factor for developing hotel projects.
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