Hoteliers Aim To Take Advantage of Summer Demand Boom

The summer of 2022 could set new demand records for the U.S. hotel industry as pent-up demand restrained for the last two years by the COVID-19 pandemic is finally unleashed.

Karl DeHaven, corporate revenue manager at Charlestowne Hotels, said summer demand across his portfolio still varies greatly by market.

"Demand for summer 2022 is outpacing the last pre-COVID summer of 2019. [Average daily rate] continues to show signs of remaining strong over all previous years/records," he said. "We've learned that even if pace/demand slows, the industry has proven that there no longer needs to be a race to the bottom [on rates], and our products still should maintain a minimum value proposition."

Rob Smith, executive vice president for full-service hotels and resorts at Aimbridge Hospitality, said it's hard to believe leisure demand will continue to grow at the same breakneck pace, but he also doesn't expect a crash.

"There has to be a bubble," he said. "Leisure transient can't be at these levels forever. But our market mix will change. I don't think things will go back to normal from pre-pandemic. Things changed during the pandemic, but business travel will return — at least in segments where there is competition. If I need to get out to sell my wares, I can't do that via Zoom. That's all coming back."

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