From severe weather events, accidents, staffing shortages and criminal activity, hotels and casinos are facing many challenges in 2022, impacting their risk management strategy decisions as well as pricing on certain lines of coverage.¹

Hotels and casinos have been slow to recover from the pandemic, but annualized U.S. revenues are up to $258.1 billion² in 2022 which is slightly above 2019 results of $222.4 billion. In upcoming years, U.S. revenue for the industry is expected to rise at a Compound Annual Gross Rate (CAGR) of 5.7% to $341.1 billion in 2026 as leisure travel and business travel are anticipated to continue rebounding from the pandemic.³

Since 2020, the Casino industry has seen a slow but steady growth in online gambling platforms, bolstered by more favorable regulations across many states.⁴

U.S. Casino industry revenue decreased from $43.65 billion in 2019 to $29.98 billion in 2020, then increased to $52.98 billion in 2021.⁵
New technology solutions continue to transform the industry, from point-of-sale systems that add speed and efficiency to the sales process, to inventory management systems and increased security.⁶

Surging inflation along with rising gas prices may persist during the outlook period, but pent-up demand is still expected to result in revenue growth in future years.⁷

• Corporations, which are a large market for the industry, will likely experience a slower recovery, as businesses continue to adjust to post-pandemic practices and consumer habits.⁸

 

1 Hotel Property Insurance: 4 Reasons a Hotel Needs It – Distinguished
2 https://my.ibisworld.com/us/en/industry/72111/industry-performance
3 Industry Outlook – 72111 Hotels & Motels in the US – MyIBISWorld
4 Industry Performance – 72112 Casino Hotels in the US – MyIBISWorld
5 CGRT_Q4_Reportforweb-1.pdf (americangaming.org)
6 4 hospitality trends that will challenge management in 2022 | Hotel Management
7 Industry Outlook – 72111 Hotels & Motels in the US – MyIBISWorld
8 Industry Outlook – 72111 Hotels & Motels in the US – MyIBISWorld