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HDC attendees predict RevPAR recovery in mid 2010 and beyond
August 6 2009

More than 50 percent of attendees who participated in a survey at STR’s inaugural Hotel Data Conference presented by Magnuson Hotels on 4-5 August believe the industry’s revenue per available room will not start to recover until at least the second half of 2010 or after.

HENDERSONVILLE, Tennessee—More than 50 percent of attendees who participated in a survey at STR’s inaugural Hotel Data Conference presented by Magnuson Hotels on 4-5 August believe the industry’s revenue per available room will not start to recover until at least the second half of 2010 or after.

“We're encouraged that the majority of attendees think the worst is behind us and they can see a gradual improvement on the horizon,” said Mark Lomanno, president of STR. “Hopefully the attendees are correct in their assessment of a potential recovery. If that is indeed the case, that should mean pricing power for hotels will return in a time frame that will allow for a stronger foundation to be built in the not-too-distant future.”

The survey compiled responses from 88 of the more than 200 conference attendees at the Renaissance Nashville Hotel.

Thirty-three percent of the respondents believe RevPAR will not start to recover until 2011 or beyond, 23.9 percent believe it will start to recover during third-quarter 2010, and 21.6 percent believe it will start to recover during fourth-quarter 2010.

According to respondents, 25.0 percent believe occupancy will start to recover in the second quarter of 2010. More than one in 10 believe occupancy may take a bit more time to recover and expect an upswing during third-quarter 2010. Other respondents were a bit more optimistic: 20.5 percent believe occupancy will start to recover in first-quarter 2010.

When asked when average daily rate will start to recover, 34.1 percent of respondents believe ADR recovery won’t start until 2011 or beyond, 30.7 percent believe it will start to recover in fourth-quarter 2010, and 15.9 percent believe it will start during third-quarter 2010.

Looking back at the January 2008 rates, 50.6 percent of the respondents believe it will take three to five years to reach those rates again, followed by 24.1 percent who believe it will take six to eight years.

For more information about the conference, please visit www.HotelDataConference.com.

About STR & STR Global:
For more than 20 years, Smith Travel Research has been the recognized leader for hotel industry benchmarking and research. Smith Travel Research and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 37,000 hotel clients, representing nearly 5 million rooms worldwide. STR is headquartered in Hendersonville, Tennessee, and STR Global is based in London. For more information, visit
www.strglobal.com or www.HotelNewsNow.com.

Media contacts:

Jeff Higley
Director of Communications/Editorial Director, Digital Media
jeff@smithtravelresearch.com
+1 (615) 824-8664 ext. 3318

Rachael Spann
Communications Coordinator
spann@smithtravelresearch.com
+1 (615) 824-8664 ext. 3305

COMMENTS   Show All
benbethel
8/6/2009 2:02:00 PM
I'm a little more optimistic... being located in central Phoenix we believe we're in the worst of times - the middle of a very hot summer at the end of a very bad recession. As the weather improves, we have a lot of things going for us that I hope will translate into additional business: 1) sunshine and great weather 9 months out of the year, 2) Phoenix Sky Harbor, the nation's most affordable to fly in and out of, which is also right in the heart of the city, 3) we're not a group-dependent resort, so our booking window for new business is much shorter, 4) we're not a franchised property, so we offer something different and unique from the boring beige chains in the area, 5) we can adapt/react much more quickly to market conditions. I think we'll start seeing business bounce back in February... we're already seeing a lot of great leads and inquiries and are already starting to book rooms/groups, so the pace is decent.
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