Yes, the prognosticators for the industry missed the worst decline in RevPAR in history, but that was not because of some perceived relationship of RevPAR to GDP. We at STR have been tracking the lodging industry’s performance for more than 25 years and we are not sure that anyone has ever even looked at the relationship between RevPAR and GDP. RevPAR is not the same as room nights sold or lodging demand. That is the relationship that is studied so intently. RevPAR projections are actually just a mathematical outgrowth of room supply, room demand and room rate projections.

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