STR, TE downgrade U.S. hotel forecast for 2019 and 2020
The U.S. hotel industry is projected to report a further slowdown in performance growth in 2019 and 2020, according to STR and Tourism Economics' latest forecast just released at the Americas Lodging Investment Summit.
For 2019, the U.S. hotel industry is projected to report flat occupancy at 66.2%, a 2.3% rise in average daily rate (ADR) to US$132.81 and a 2.3% lift in revenue per available room (RevPAR) to US$87.94. RevPAR increased 2.9% in both 2018 and 2017—that growth level was the lowest RevPAR percentage change for the country since 2009.
Among chain scales, the Midscale segment is likely to report the only increase in occupancy (+0.1%). Luxury chains are expected to post the highest growth rates in ADR (+2.5%) and RevPAR (+2.3%). While all segments should report RevPAR increases for 2019, the lowest rate of RevPAR growth is projected in the Upper Midscale segment (+1.7%).
For 2020, STR and Tourism Economics project the U.S. hotel industry to report a 0.2% decrease in occupancy to 66.1%, a 2.2% lift in ADR to US$135.68 and a 1.9% rise in RevPAR to US$89.65. Occupancy in the U.S. has not declined year over year since 2009.
The highest overall rate of RevPAR growth (+2.1%) is once again expected in the Luxury segment, while the lowest (+1.4%) is projected among Midscale chains.
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.