Continued Growth Forecasted for U.S. Hotel Industry

by Jessica Montevago
Continued Growth Forecasted for U.S. Hotel Industry

The luxury and independent segments are projected to report the largest increases in occupancy this year. Photo: Four Seasons


As the U.S. hotel industry closed out a record year in 2017, experts predict the uptick will continue through next year.

Hotel research firm STR and Tourism Economics forecast occupancy growth by 0.3 percent in 2018, with average daily rate (ADR) increases by 2.4 percent and revenue per available room (RevPAR) up by 2.7 percent, as demand continues to outpace supply. A more modest growth is predicted for 2019, with a 0.1 percent increase in occupancy and a 2.4 percent rise in RevPAR.

The initial forecast of 2018, released this week at the Americas Lodging Investment Summit (ALIS), cited the strong economy now in its ninth year of growth.

According to Hotel Management, conference speakers cautioned that while occupancy and demand have been on the positive side, average daily rate has been stagnant, “a trend blamed on a host of impacts, including Airbnb.”

The luxury and independent segments are projected to report the largest increases in occupancy this year, according to the report. Independent hotels will see the most substantial growth in ADR, up 2.5 percent and RevPAR up nearly 3 percent. The lowest rate of RevPAR growth is projected in the upscale segment.

In 2017, occupancy increased 0.9 percent to 65.9 percent. Meanwhile, ADR rose 2.1 percent to nearly $127, driving RevPAR – a key industry metric – up 3 percent, outperforming projections and reaching record-breaking levels, STR says.

Of the top markets, Houston, Texas, saw the largest spike in RevPAR, up more than 10 percent, due to Hurricane’s Harvey impact on displaced residents and relief workers seeking rooms.

Orlando, Florida, reported the only other double-digit jump in RevPAR, increasing 10 percent, with the second-highest increases in occupancy, up nearly 5 percent to 79 percent.

Minneapolis saw the largest drop in RevPAR, at 3.6 percent, because of the influx in hotel rooms developed for the Super Bowl, which are now a struggle to fill. 

  0
  0
Tip of the Day
The professional travel advisor’s job is to equip the traveler with the necessary information to enable a good decision that will reflect that person’s own risk tolerance.
 
Paul Ruden
Daily Top List

Most Powerful Passports in the World

1. United Arab Emirates

2. Singapore

3. Germany

4. Denmark

5. Sweden

Source: Passport Index

TMR THIS WEEK
http://services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=5c9c49e9-0e02-e911-b9b4-782bcb667b27

Why Travel Makes the Perfect Holiday Gift

Travel advisors are seizing the opportunity to encourage clients to give the gift that can be enjoyed any time of the year.

TMR Recommendations
Top Stories
Luxury Meal Plans Up the Ante at All-Inclusive Resorts
Luxury Meal Plans Up the Ante at All-Inclusive Resorts

It’s not your grandfather’s all-inclusive resort any more, as Hyatt, Hilton, Marriott, Disney and luxury properties add upscale food-and-beverage plans.  

Hertz and CLEAR Partner on 30-Second Car Rental
Hertz and CLEAR Partner on 30-Second Car Rental

A new service promises to get customers out the rental car exit gate using only biometrics, in less than 30 seconds.

Worldview Tours Suddenly Ceases Operations
Worldview Tours Suddenly Ceases Operations

After 40 years of doing business on the up-and-up, it was a shock to those who had worked with the company to see it go under.

What to Know About Navigating Marriott’s Massive Data Breach
What to Know About Navigating Marriott’s Massive Data Breach

Facing extensive costs as a result of the breach, Marriott is offering to pay for customers’ new passports and annual identity monitoring subscriptions.

Anchorage Assesses Damage After Powerful Quake
Anchorage Assesses Damage After Powerful Quake

The scenic Glenn Highway was the hardest hit during the 7.0 magnitude earthquake on Friday.

Marriott: 500 Million Starwood Guests Could Be Affected in Data Hack
Marriott: 500 Million Starwood Guests Could Be Affected in Data Hack

The Starwood guest reservation database was breached at brands including W Hotels, Sheraton and Westin.

News Briefs
TMR Report Cards & Outlooks
Advertiser's Voice
Advertiser's Voice: Tauck