Continued increases expected for US hotels
02 JUNE 2014 1:27 PM
The U.S. hotel industry is expected to continue to report performance increases in the remainder of 2014 and in 2015, according to STR and Tourism Economics’ most recent forecast.
HENDERSONVILLE, Tennessee—The U.S. hotel industry is expected to continue to report performance increases in the remainder of 2014 and in 2015, according to STR and Tourism Economics’ most recent forecast.
In 2014, the U.S. hotel industry is predicted to report a 1.4-percent increase in occupancy to 63.1 percent, a 4.2-percent rise in average daily rate to US$115.00 and a 5.7-percent gain in revenue per available room to US$72.55.
"Overall our forecast is very positive for the next two years, and we expect robust growth,” said Amanda Hite, COO and president of STR, while presenting at the NYU International Hospitality Industry Investment Conference on Monday.
"Supply growth is accelerating but it's nothing to worry about at this point,” Hite continued.
Demand in the U.S. is forecasted to increase 2.6 percent, while supply is predicted to grow by 1.2 percent.
In 2015, STR and Tourism Economics predict occupancy to rise 0.6 percent to 63.5 percent, ADR to increase 4.3 percent to US$119.93 and RevPAR to grow 4.9 percent to US$76.13. Demand is expected to increase 2.2 percent, and supply is predicted to increase 1.6 percent in 2015.
Hite also commented, “We will see good group rate increases in 2015 and 2016 because those negotiations are taking place today."
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