STR releases optimistic forecast for 2010, 2011
“Room rate growth trajectory will determine the magnitude of recovery,” said Mark Lomanno, president of STR. “We’re still a little bit worried about the ADR part of the equation. The industry is currently facing a lot of challenges, and there are all kinds of pressure on that ADR number: the OTAs, and still rebounding group business to name just two.”
Supply is expected to grow 2.2 percent during 2010, and demand is projected to increase 6.6 percent.
STR projects the industry will end 2011 with increases in all three key metrics. Occupancy is forecast to rise 1.4 percent to 57.9 percent, ADR is expected to be up 3.9 percent to US$101.55, and RevPAR is projected to rise 5.3 percent to US$58.75.
Supply during 2011 is expected to end the year with a 1.1-percent increase, and demand is projected to rise 2.5 percent.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.