Second Quarter Hotel Demand Growth Surprises Forecasters, But Roadblocks Remain
An Uptick in COVID-19 Cases Could Spell Difficulties in the Second Half of 2021
Hotel demand growth has outpaced expectations for this leisure-driven summer travel season, but that doesn't mean the overall recovery is further along than anticipated, forecasting experts said at the Americas Lodging Investment Summit.
Hotel demand growth has outpaced expectations for this leisure-driven summer travel season, but that doesn't mean the overall recovery is further along than anticipated, forecasting experts said at the Americas Lodging Investment Summit.
During a session titled "The Numbers — What To Expect in 2021 & Beyond?" STR President Amanda Hite said second quarter demand growth for U.S. hotels hit 106% year over year, greater than the 98% STR projected. STR is CoStar's hospitality analytics firm.
Hoteliers have seemingly made the most of that demand uptick, once again beating STR's expectations for the quarter in rate growth, which hit 43% year over year compared to an expectation of 33% to 34%.
However, Hite warned not to expect a drastic move upward when STR issues a revised forecast for a year in the near future.