Room rates softening for luxury resort hotels
After enjoying double digit growth in room rates, luxury resorts are facing a slowdown.
At first glance, a drop below 1% from a year ago doesn’t seem that significant. But it comes after a massive increase from early in the pandemic to March of this year. That’s when the average daily rate for a luxury resort hotel room went from less than $200 to nearly $500.
CoStar Analytics, a commercial real estate data firm, predicts luxury resort room rates will stay soft or decline in markets that experienced big hikes. Why?
CoStar suggests more Americans are traveling abroad while others paying high airfares may look to lodging to keep costs manageable.