According to the Hospitality Asset Managers Association (HAMA) Fall 2023 Industry Outlook Survey, nearly 60% of its members believe RevPAR will return to 2019 levels for the U.S. as a whole next year. Almost 25% believe it will happen this year.
The semi-annual report updated the opinions, experiences and predictions of nearly 80 hotel asset managers from the earlier spring conference survey with a focus on budgetary predictions and potential causes of industry concern.
Conducted in conjunction with HAMA’S 2023 Annual Fall Meeting in New Orleans, 77 asset managers, comprising approximately one-third of membership, participated in the survey.
“2023 continues to provide positive results and optimistic outlooks from our membership,” said Derrick Yee, president HAMA and VP, asset management, Placemakr. “The majority of our respondents are looking to exceed budgetary predictions for RevPAR and GOP, and many of the biggest concerns that arose during COVID, such as supply chain delays, appear to have subsided. While there is some concern surrounding issues like demand and cost increases, the overall outlook from the hospitality asset management perspective is positive.”
Other highlighted results include:
- 61% of respondents forecast RevPAR increases in 2023 compared to pre-pandemic 2019.
- Wage increases, demand and labor availability are the top three concerns of hotel asset managers.
- Nearly two-thirds of participants (63.64%) believe the country will avoid a recession over the next two years.
- More than 70% of HAMA members are actively pursuing acquisitions.
The survey also found that almost 45% of HAMA members said they are not contemplating any brand or management changes.
“However, that leaves a good 50% or more that are considering either changes in brand, management or both,” said Emily Miller, board member, HAMA and VP, asset management, Atrium Holding Company, during a media presentation of the survey results. “I think that speaks to all the brand proliferation and all the different new extended-stay and conversion brand options that have been launched.”
Chad Sorensen, membership chair, HAMA and managing director/CEO, CHMWarnick, added, “I think that goes hand in hand with owners developing their post-COVID strategy as they looked at their assets, making sure that they have the right brand and the right management team in place. There really has been a lot of management company activity and changes from one third-party operator to another.”