Source: STR
Source: STR
Source: STR
Source: STR

The U.S. hotel industry is projected to end 2010 with increases in two of the three key performance measurements, according to STR's forecast update.

STR projects 2010 occupancy will increase 5.3 percent to 57.4 percent, average daily rate is expected to end the year virtually flat with a 0.1-percent decrease to US$97.92, and revenue per available room is projected to rise 5.2 percent to US$56.23.

Supply is expected to grow 2.0 percent during 2010, and demand is projected to increase 7.4 percent.

"2010 has been a better year than anyone expected in January," said Mark Lomanno, president of STR. "Demand has been a pleasant surprise, and it really is the driver behind the kind of year we've experienced. With that said, hoteliers need to take advantage of the pricing power they've been given because of the increased demand. Our forecast reflects that there will be a movement toward increased rates in 2011."

In 2011, STR is projecting increases in all three key performance metrics. Occupancy is expected to rise 1.6 percent to 58.3 percent, ADR to increase 3.9 percent to US$101.73, and RevPAR is projected to end the year up 5.5 percent to US$59.35.

Supply during 2011 is expected to end the year with a 0.9-percent increase, and demand is projected to rise 2.5 percent.

About STR

STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.

Rachael Spann Urie
Communications Coordinator
+1 (615) 824-8664 ext. 3305
STR