Signs of maturation of the U.S. lodging industry are abundant

Traditional hotel room unit growth is slowing, margins and profits are under pressure, RevPAR growth is not keeping pace with inflation

As the traditional U.S. lodging industry reaches maturation and growth becomes more expensive, increased competition leads to the cannibalization of existing assets and increased customer acquisition costs.

Key takeaways

• To drive higher same-store sales, hotel brands and owners will need to expand services to existing customers or attract new customers beyond traditional business and leisure travelers;
• CEBRE expects hospitality companies to partner with residential real estate companies to create trusted and amenitized living options like student housing, co-living, senior-communities and vacation homes;
• For guests, these partnerships can enhance trust given the backing of large, globally recognized brands and increase geographic and contract length flexibility. They also provide travelers with opportunities to earn and use points in all phases of life and for all travel needs.

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