STR releases optimistic 2011, 2012 U.S. forecast
STR projects 2011 occupancy will increase 1.8 percent to 58.5 percent, average daily rate is expected to end the year up 4.2 percent to US$102.21, and revenue per available room is projected to rise 6.1 percent to US$59.78.
The U.S. hotel industry is projected to end 2011 with increases in all three key performance measurements, according to STR's forecast update.
STR projects 2011 occupancy will increase 1.8 percent to 58.5 percent, average daily rate is expected to end the year up 4.2 percent to US$102.21, and revenue per available room is projected to rise 6.1 percent to US$59.78.
Supply is expected to report slight growth in 2011 with a 0.7-percent increase, and demand is projected to increase 2.5 percent.
"The stronger hotel demand fundamentals the U.S. hotel industry experienced in 2010 will result in a quicker turnaround than we had expected," said Mark Lomanno, CEO of STR. "While this strength resulted in rapidly recovering occupancies last year, we look for rebounding room rates to lead RevPAR growth in 2011 and 2012. While it may be the second half of 2011 before we begin to see rapidly accelerating room rates, by the time we get to 2012 we now expect room rate growth to rival the boom years of 2006 and 2007."
STR also is projecting increases in all three key performance metrics during 2012. Occupancy is expected to rise 1.7 percent to 59.5 percent, ADR will increase 6.8 percent to US$109.16, and RevPAR is projected to end the year up 8.6 percent to US$64.93.
Supply during 2012 is expected to end the year virtually flat with a 0.5-percent increase, and demand is projected to rise 2.2 percent.
This updated forecast was originally presented during the Americas Lodging Investment Summit (ALIS) on 24 January 2011.
About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.
CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.
CoStar Group’s websites attracted over 139 million average monthly unique visitors in the fourth quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.