Field Notes: Lodging and Gaming
May 2, 2022
As earnings season kicks off for the national brands, we talked with Valbridge’s Lodging and Gaming Specialty Practice team about the current state of the market. They noted that Wyndham Hotels & Resorts reported at the end of April that they had beat earnings estimates, where first quarter RevPAR grew 39% year over year. The team expects more, if not all, of the major brands to report similar RevPAR growth in the next few weeks. And according to CBRE, overall RevPAR in December 2021 exceeded 2019’s level since the pandemic began.
For perspective, there are almost 91,000 hotels in the US and over 5.3 million hotel rooms. With an estimated value of over $178 billion dollars and total US employment at over 1.6 million, the industry has a far-reaching effect on the economy. Hourly earnings for those employed in the industry have seen steady increases over time, to a record $19.68 per hour in 2022.
Since the pandemic began, we have seen a consumer shift in where they spend money. A survey by Zippia indicated that 78% of millennials would rather spend their money on experiences than on things. This is similar to the 77% of millennials who say some of their best memories were made at events and 79% who say that going to live events together helps them feel closer to the friends and family they attend with.
The Valbridge Lodging team expects to see continued gains in RevPAR through 2022, which should be followed by price improvement across all lodging segments. For more detailed information, reach out the to team at: https://www.valbridge.com/lodging-and-gaming/.