It was a tumultuous 2020 and high levels of COVID-19 infections mean that it will be a difficult start to 2021, but economic prospects for the rest of the year are bright. This will provide a much more supportive environment for real estate, but challenges remain.

Travel, especially business travel, is a major factor in hotels' recovery. When business travel resumes, we believe it will do so in full force. Read our ViewPoint report to learn more about the state of hotels and the future for group demand.

According to the Bureau of Economic Analysis (BEA), GDP fell 32.9% at an annual rate, driven by large reductions in consumption of services and fixed investment. Our baseline outlook for the U.S. predicts real GDP change of -5.1% in 2020.

After 10 consecutive weeks of occupancy gains, the hotel industry was in a better position than we expected six weeks prior. However, an uptick in COVID-19 cases threatens the positive momentum.

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?”

CBRE Hotels Research has released a preliminary 2020 forecast that analyzes the impact of the pandemic on hotel performance and provides insight as to how hotels may start to recover in the back half of the year.

Of all commercial property types, hospitality is likely the most sensitive to fear and uncertainty. CBRE EA is closely monitoring the lingering effects of COVID-19 and will consider the pandemic’s impact in our upcoming forecasts.

CBRE recently released a report analyzing the short-term rental (STR) market’s growth and impact on traditional hotels. There no longer is any question that STRs are here to stay.

CBRE is a proud sponsor of the Americas Lodging and Investment Summit (ALIS) which proved to be another successful and insightful event last month.