STR: Summer Forecast Shows Performance Boost
The U.S. hotel industry is expected to report increases in performance results in summer 2013, according to STR’s summer forecast. The summer season as defined by STR comprises June, July and August. When comparing against those three months combined in 2012, STR predicts occupancy for those three months will rise 1.0 percent to 70.0 percent, average daily rate will increase 4.4 percent to US$112.21 and revenue per available room will grow 5.
HENDERSONVILLE, Tennessee -- The U.S. hotel industry is expected to report increases in performance results in summer 2013, according to STR’s summer forecast.
The summer season as defined by STR comprises June, July and August. When comparing against those three months combined in 2012, STR predicts occupancy for those three months will rise 1.0 percent to 70.0 percent, average daily rate will increase 4.4 percent to US$112.21 and revenue per available room will grow 5.4 percent to US$78.50.
“Despite tougher comps over the last two summers, demand for hotels rooms will increase by 2.0 percent this season,” said Brad Garner, STR’s COO.
“We expect concerns and perceptions of the on-going government sequestration to directly replace concerns normally associated with increases in fuel prices during the summer,” Garner continued. “We further expect the sequester concerns to have very little measurable impact on summer performance.”
Supply this summer is expected to increase 1.0 percent and demand is projected to rise 2.0 percent. Total room revenue is forecasted to grow by 6.4 percent.
Overall in 2013, STR expects the hotel industry’s occupancy to rise 0.8 percent to 61.9 percent, its ADR to increase 4.9 percent to US$111.27 and its RevPAR to be up 5.7 percent to US$68.86.
The STR family of companies, which was formed in 2008, comprises of STR, STR Global, RRC Associates, STR Analytics and HotelNewsNow.com. Each company services the hotel industry in a different capacity: STR is the data provider for North America and the Caribbean; STR Global provides non-North American data; RRC Associates is the research firm that focuses mainly on destinations; STR Analytics digs deeper into the data for the hotel industry and provides consulting services; and HotelNewsNow.com is a digital media platform that offers the latest industry news, trends and insight.