HENDERSONVILLE, Tennessee—The U.S. hotel industry is projected to end 2010 with increases in two of the three key performance measurements, according to STR’s forecast update.
STR projects 2010 occupancy will increase 5.3 percent to 57.4 percent, average daily rate is expected to end the year virtually flat with a 0.1-percent decrease to US$97.92, and revenue per available room is projected to rise 5.2 percent to US$56.23.
Supply is expected to grow 2.0 percent during 2010, and demand is projected to increase 7.4 percent.
“2010 has been a better year than anyone expected in January,” said Mark Lomanno, president of STR. “Demand has been a pleasant surprise, and it really is the driver behind the kind of year we’ve experienced. With that said, hoteliers need to take advantage of the pricing power they’ve been given because of the increased demand. Our forecast reflects that there will be a movement toward increased rates in 2011.”
In 2011, STR is projecting increases in all three key performance metrics. Occupancy is expected to rise 1.6 percent to 58.3 percent, ADR to increase 3.9 percent to US$101.73, and RevPAR is projected to end the year up 5.5 percent to US$59.35.
Supply during 2011 is expected to end the year with a 0.9-percent increase, and demand is projected to rise 2.5 percent.
About STR
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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