Forecasters appear confident average-daily-rate growth will build during 2012 in the U.S. hotel industry, though pricing pressures could limit just how robust that growth will be, according to a report from HotelNewsNow.com’s Jason Q. Freed.
When data collectors released their most recent 2012 forecasts last week, it was clear they expect December’s surprising rate spikes to continue into 2012. STR, parent company of HotelNewsNow.com, forecast the U.S. hotel industry’s average daily rate will be up 3.8% to US$105.45; PKF Consulting projected ADR growth of 4.7%; and PricewaterhouseCoopers forecast ADR growth at a whopping 5.1% in 2012.
Upward and downward rate pressure exists, however, according to Chris Crenshaw, VP of strategic development at STR. Among the influencing factors he noted: a revenue manager’s ego; corporate negotiations between hotels and travel buyers; and contributions from online travel agencies.
And speaking of data, STR today has weekly numbers for the U.S. and Canada.
U.S.: The U.S. hotel industry experienced increases in all three key performance metrics during the week of 22-28 January 2012, according to data from STR.
In year-over-year comparisons for the week, occupancy was up 4% to 53.8%, ADR increased 4.3% to US$101.84 and revenue per available room was up 8.5% to US$54.78.
Canada: In year-over-year measurements, the Canadian hotel industry’s occupancy ended the week with a 3.8% increase in occupancy to 56.7%, its ADR rose 3.3% to CAD$125.32 (US$125.42) and its RevPAR was up 7.2% to CAD$71.06 (US$71.12).
The U.S. unemployment rate declined by 0.2 percentage points to 8.3% during January as nonfarm payroll employment grew by 243,000 jobs, the U.S. Department of Labor said Friday.
Big employment gains were reported in the private sector, most notably in professional and business services, leisure and hospitality, and manufacturing.
Accor’s proposed deal to purchase Groupe du Louvre, owned by an affiliate of Starwood Capital Group, will not happen, Reuters reports.
The company’s offer, made in conjunction with property group Unibail-Rodamco, “was not retained,” a spokeswoman said, without giving further details. An unidentified source said Starwood Capital Group, which is marketing the company, is talking to several other potential buyers from across the hotel sector.
A busy week for hotel deals continues with the purchase of the former Gansevoort hotel on Miami’s South Beach by affiliates of Starwood Capital, the LeFrak Organization, and Invesco Limited for an undisclosed sum.
The 334-room hotel will be renamed as The Perry South Beach until late 2013, when it is relaunched in 2013 with a new brand.
"This is an incredibly exciting opportunity to create a premier luxury hotel and residences along one of the world's most beautiful and popular beaches at a time when global interest in the Miami marketplace is close to surpassing its all-time high," Barry Sternlicht, chairman and CEO of Starwood Capital, said in a news release. "This is a powerhouse asset with a unique beach footprint in one of the strongest hotel markets in the nation with high barriers to entry. We are excited to create an outstanding destination resort and residences in this dynamic city. Importantly, this partnership has extensive experience and a proven track record of successfully investing in and managing thousands of properties in this region."
Compiled by Shawn A. Turner.