US, European hotel room rates could keep rising amid growing demand: industry executives

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Supply is not expected to pick up significantly for the next year or two, IHG Hotels and Resorts CEO Keith Barr said.

Hotel room rates in the US and Europe are rising and may get even more expensive as supply has failed to keep up with demand, industry executives said.

“It’s just going to support pricing being where it should have been over time, which is great for this industry,” said Barr. Midscale and economy rooms now cost 15% to 20% more than before the pandemic, and the increases are holding, said Accor CEO Sébastien Bazin at the conference.

 

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