PHOENIX — Hospitality industry experts were already expecting good things from Phoenix-area hotels in 2023, but after some positive signs in the market and overall economy, their outlook for the year has been raised.
CBRE Group Inc. announced Thursday that it now expects Phoenix hotels to see an average revenue per available room in 2023 of $122.30, an 8.5% increase from 2022 and a $2.45 increase from the previous forecast that was published in November.
The hospitality industry watchers at CBRE raised their outlook on the Phoenix market after hotel performance in Phoenix and nationwide saw gains in the fourth quarter of 2022 and with the expectation of a slightly positive GDP growth in 2023, the research firm wrote in its March 8 note.
"The hotel market for the Phoenix metro continues to remain strong with increased demand supported by both leisure and corporate growth," Adrienne Andrews, a senior vice president at CBRE, said in a statement. "In 2022, despite the first quarter occupancy and demand being impacted by omicron, the year ended with revenues that exceeded peak 2019 by over 18%."
