After 10 consecutive weeks of occupancy gains, the hotel industry was in a better position than we expected six weeks prior. For the week ending on June 27, U.S. hotels reached more than 46% occupancy, more than double the low point of 22% in April.
However, an uptick in COVID-19 cases threatens the positive momentum. As more states pause their reopening plans, a resurgence in cases is expected to once again impact lodging demand. The speed of recovery is expected to slow in July and August, especially for luxury and upscale properties.