Steady Growth Is Expected for US Hotels in ‘17 and ‘18
According to STR and Tourism Economics’ forecast, the US hotel industry is projected to see slower but steady growth through 2018.
For the total year 2017, the industry is predicted to report a 0.3% decrease in occupancy to 65.3%, a 2.8% rise in average daily rate to $127.34 and a 2.5% increase in revenue per available room to $83.20. This is below the historic RevPAR growth rate of more than 3.0% for each year from 2010 to 2016. This year independent hotels are projected to see the largest increases in both ADR and RevPAR.
For 2018, US hotels are likely to report a 0.2% decrease in occupancy to 65.2% but increases in ADR (rising 2.8%) and RevPAR (increasing 2.6%). All seven Chain Scale segments are expected to see a decrease in occupancy.
“Demand has outpaced supply in terms of growth for seven consecutive years, but we expect that to change in 2017 and continue in 2018,” said Amanda Hite, STR’s president and CEO. “In an environment where occupancy is flat or slightly declining, ADR is the lone driver of RevPAR, which is why we expect RevPAR growth in 2017 and 2018 to be slower than the industry average of the past 30 years.”
See Business Travel Executive’s article here.