Hotel industry performance may return to 2019 levels in 2024

The revenue per room will stay below 2019 levels in 2023.

A property expert’s report showed that the hotel industry will continue to be uplifted by the influx of tourists in 2023 but the sector’s revival will not return to 2019 levels just yet.

According to Cushman & Wakefield, hotel revenues will revive in 2023, with the revenue per room (RevPAR) to grow towards $186.15 in 2023. It sees full pre-pandemic recovery for the RevPAR to return to pre-pandemic levels in 2024 or later.

Hotel room supply will increase by 3.3% year-on-year in 2023, which would bring the total count of rooms to higher than 2019 levels.

Tourist arrivals are still below pre-pandemic levels which could allow hotels to open in phases in tandem with recovering demand.