Hotels in Fort Worth recovering faster than in Dallas
Fort Worth hotels have seen a faster return to pre-pandemic levels of business than hotels in Dallas, with some markers predicting a full recovery in Cowtown by the end of 2022, according to a new report from Dallas-based commercial real estate firm CBRE.
Why it matters: It's a sign that leisure tourism, which is a larger part of the Fort Worth economy, is returning faster than corporate travel.
- Dallas hotels, which more frequently cater to business travel, lag behind but could see a full recovery by the end of 2024.
The big picture: The recovery has been faster at high-end properties, where consumers are less price sensitive and the impact of inflation may be less severe.
- Higher gas prices, food costs and mortgage rates could dissuade budget-minded consumers from making travel plans.
Zoom in: The average cost of hotel rooms in Dallas is expected to be $117 — a 17.4% increase from 2021, per the CBRE report.
- Occupancy rates (61.1% in 2022 vs. 68.4% in 2019) should recover in 2024.
Meanwhile, Fort Worth hotel rates have already surpassed 2019 levels.
Zoom out: Nationally, CBRE expects a full recovery in average room rates by the end of 2022 and a return to pre-pandemic levels of demand in 2023.
What they're saying: "We are still seeing the effects of the Omicron variant from last winter," Kevin Donahue, first vice president with CBRE’s Valuation and Advisory Services group, said in the report. "Now that companies are more confident in planning events in the next year, hotels will benefit from the increase in travel."
More Dallas stories
No stories could be found
Get a free daily digest of the most important news in your backyard with Axios Dallas.