STR, TE Forecast: Steady growth for U.S. hotels in 2017 and 2018
"That said, growth of any rate continues to push industry performance to all-time highs."
For total-year 2017, the U.S. hotel industry is predicted to report a 0.3% decrease in occupancy to 65.3%, a 2.8% rise in average daily rate (ADR) to US$127.34 and a 2.5% increase in revenue per available room (RevPAR) to US$83.20. RevPAR grew more than 3.0% for each year from 2010 to 2016.
Among Chain Scales, the Midscale segment is expected to see the only year-over-year increase in occupancy (+0.1%). The Independent segment is projected to report the largest increases in ADR (+3.0%) and RevPAR (+2.7%). The lowest rate of overall performance growth is expected in the Upscale segment (RevPAR +1.3%).
For 2018, STR and Tourism Economics project the U.S. hotel industry to report a 0.2% decrease in occupancy to 65.2% but increases in ADR (+2.8% to US$130.95) and RevPAR (+2.6% to US$85.36). All seven Chain Scale segments are expected to see a decrease in occupancy. The Luxury segment is projected to report the largest increases in ADR (+3.0%) and RevPAR (+2.8%).
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. 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. For more information, please visit str.com.
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