Markets in Focus


Q2 2023

Markets in Focus  |  Hospitality  |  H Q2 2023

Restaurants and Drinking Establishments
In a survey in early 2022, restaurant owners predicted it would be another year or
more until business conditions returned to normal. That estimate appears on target, even though these owners may ultimately find themselves operating in a new model
of normalcy.

At this time, three out of four restaurant owners feel comfortable shifting from a survival/recovery mode to one of sustaining their business. There are major caveats to this relatively positive picture, however, as the new normal is likely to feature ongoing labor challenges and short-term inflationary pressures.¹

Hotels and Casinos
The hotel and casino industry has rebounded significantly from pandemic lows, and the recovery likely would be even stronger if not for labor shortages, relatively weak business travel and limited travel from Asia. These situations are slowly resolving.

Even so, hotel spending is expected to increase nearly 25% in 2023 compared to 2022. Subsequent year growth rates will quickly taper off, however, until the industry nears pre-pandemic levels in 2025.²