Disruption in the Lodging Industry: Different Views on Recovery Length
The COVID-19 global pandemic has thrown the lodging industry into an unprecedented stoppage. Recently, as occupancies have reached all-time lows and closures are widespread, focus and interest has changed from the early pandemic question of “how bad will it get?” to “How long can it last?”
The ongoing pandemic, which reached the U.S. in January-February, didn’t gather enough strength to derail commercial office activity in the first quarter of 2020. Favorable results were in part due to completions of ongoing deals that weren’t put on hold, quarterly data collection methods used, and reasonably optimistic views on the expected duration and severity of the economic slowdown.
Though apartment fundamentals are expected to hit their weakest points one quarter later than employment, they are also projected to return to pre-COVID levels more quickly, hitting Q1 2020 levels one quarter earlier, in Q1 2022.