U.S. Hospitality Industry Outlook for 2020

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How will U.S. hotels perform in 2020?

Despite concerns over an impending economic downturn, the U.S. economy has remained resilient.  Over the last couple of years, the continued stability of the economy has benefitted the hospitality industry as demand has led to the proliferation of new hotel projects throughout the country.

However, with a considerable number of hotels slated to open their doors in 2020, experts predict that supply will outpace demand.  Thus, hotel owners may see a drop in occupancy throughout the year.  Additionally, continued competition from industry disruptors, such as Airbnb and VRBO, is also expected to cut into hotel occupancy rates.

Another thing to keep an eye on this year is the lack of manpower in the hospitality industry.  With the nation at nearly full employment, it is difficult for hotel and hospitality companies to hire enough workers to realize expansions.  As such, many top companies will scale back on their plans for growth and instead focus on maintaining and defending their market positions.

In 2020, the changing political climate is also raising concerns for the hospitality industry.  For instance, the continued difficulty that international travelers face when attempting to secure U.S. visas will impede the flow of foreign tourists.  Naturally, this will hurt the hotel sector and other industries that benefit from overseas-tourist demand.  Additionally, political uncertainty for the upcoming presidential election is also a cause for concern for all U.S. industries, including hospitality.

Overall, hospitality experts are not predicting any major industry shifts in 2020.  While occupancy rates will drop slightly and demand growth will be constrained, these factors should not result in major losses for hotels.  However, 2020 could mark the beginning of an economic downturn, so many hospitality brands are bracing themselves for impact.

These are some of the predictions for the hospitality industry in 2020.  Are you interested in staying up-to-date with the latest hospitality trends?  Then get the information you need by meeting and connecting with all the top California lodging professionals at the California Lodging Investment Conference.  Contact us today to learn more about this fantastic informational and networking event.


The CLIConference is the only Hotel Investment Conference in California.

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