Hospitality Performance Room rates increased by over 10 percent in Q1 2023, with RevPAR slightly higher than expected. However, adjusted for inflation, room rate, and RevPAR are still below 2019 levels, and it is unlikely that 2019 results, in real terms, will be achieved until 2026.

In 2023, the hospitality industry was characterized by a "Post-Pandemic Pivot," marked by record-breaking travel demand—often called "revenge travel"—clashing with significant labor shortages and inflation. After years of lockdowns, travelers returned in droves, driving hotel occupancy and daily rates to all-time highs. However, the industry struggled to staff hotels and restaurants, leading to a widespread adoption of technology like mobile check-in, robot room service, and QR-code menus to fill the gaps. There was a notable shift toward "Bleisure" travel, as the rise of remote work allowed guests to extend business trips into family vacations. Sustainability also moved from a niche interest to a core business requirement, with major chains eliminating single-use plastics and investing in carbon-neutral building designs. While the luxury segment thrived, the middle-market felt the squeeze of rising operating costs. Overall, 2023 was a year of "normalized chaos," where the industry learned to operate with leaner teams while trying to meet the heightened expectations of a world that had deeply missed the joy of travel.