There's a shift in demand for hotels, do you know which market types are changing?

Hotel demand is shifting once again, growing beyond its '21/22 themes. For the last 18 months, we have seen metro markets be impacted by the decline of group, corporate, and international inbound travelers. 

Alternatively, tertiary markets with large drive-in businesses were BOOMING--Myrtle Beach has been reaching historic records for 3 years in a row. My biggest takeaway from January 2023 performance is that Urban Metro centers are showing a STRONG recovery in hotel demand.

Despite the challenges presented by the COVID-19 pandemic, these bustling urban areas are rebounding with strong demand as the data shows a 63.5% change compared to January 2022. So why have city centers been able to weather the storm better than other regions? One major factor is the ability to cater to a diverse range of travelers, whether for business or leisure purposes. Additionally, urban areas offer a wide range of amenities and attractions that can keep visitors entertained and engaged for days or even weeks.

Ultimately, as Urban Metros shift further into post-pandemic life, the future of hotel demand in Urban Metropolitan areas looks promising. Corporate travel has continued to rebound in 2023 and leisure business should pick up starting with the Spring Break season through Graduation and summer. 

Stay tuned for more updates!