The global lodging industry demonstrated its resilience in 2021, following the drastic and immediate shock demand observed in 2020 with the onset of the COVID-19 health crisis. Increasing vaccination rates, tremendous amounts of government economic stimulus, coupled with lockdown fatigue elevated lodging demand to unexpected heights, helping accelerate the industry’s recovery. Performance was uneven with markets heavily dependent on business and group demand more slowly progressing towards a full recovery than markets reliant on leisure demand. Similarly, markets that historically relied on international demand faced greater challenges than those dependent on domestic demand.
In 2022, the make-up of demand and the progression of the recovery will continue to be top of mind for hotel owners, operators, and investors. Additionally, the industry will have to navigate operational hurdles brought on by labor shortages, rising inflation, supply chain issues and the impact on service levels given the difficulties operating in such an environment.