Hotel Industry Outlook Clouded by Labor, Demand Trajectory

The excitement over the continued growth of leisure travel making its return within the second and third quarters has been dampened by the labor shortages throughout the hotel industry. The labor shortages can be attributed to those leaving the industry and the continued affects of the pandemic stimulus. Unfortunately, only time will tell if/ when the employees will want to come back to the industry. Additionally, many hotels, pending location, are able to hit 2019 occupancy levels over the weekend, but continue to struggle with gaining business and group travel over the weekdays. STR reports that business and group travel will emerge again within the second and third quarters of 2021, but will not hit pre-pandemic levels until 2024.