HENDERSONVILLE, Tennessee—The U.S. hotel industry is forecast to end the summer with increases in all three key performance metrics in year-over-year comparisons, according to STR’s revised 2010 summer forecast.
During the summer travel season which comprises June, July and August, STR anticipates occupancy to increase 4.3 percent to 64.4 percent, average daily rate to bump up 0.1 percent to US$97.17, and revenue per available room to rise 4.5 percent to US$62.60.
“Demand and ADR are both tracking positively,” said Brad Garner, COO at STR. “ADR, however, is hard to call due to recent events in the Gulf. It remains to be seen how much demand will be ‘re-accommodated’ and at what price or rate.”
Supply is expected to rise 1.8 percent, and demand for the summer is projected to increase 6.2 percent.
Revenue for the summer is forecast to rise 6.3 percent.
During summer 2009, occupancy fell 9.1 percent to 61.7 percent, ADR dropped 9.6 percent to US$97.15, and RevPAR was down 17.8 percent to US$59.96.
August is predicted to show the largest increases in two of the three key metrics. The month’s ADR is forecast to increase 0.8 percent to US$97.63, and RevPAR is projected to report a 5.7-percent increase to US$61.81. June is forecast to post the largest occupancy increase, up 5.6 percent to 64.5 percent.
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.str.com.
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