Midway through 2022, the U.S. hotel industry continues to make strides toward recovery, with nominal hotel room revenue and state and local tax revenues projected to exceed 2019 levels by the end of this year, according to the American Hotel & Lodging Association 2022 Midyear State of the Hotel Industry Report.

Hotel room revenue is projected to surpass $188 billion by the end of 2022, eclipsing 2019 figures on a nominal basis. (Nominal values are not adjusted for inflation.) When adjusted for inflation, however, revenue per available room (RevPAR) is not expected to surpass 2019 levels until 2025. Hotels are projected to generate nearly $43.9 billion in state and local tax revenues this year, up almost 7% from 2019 levels.