The U.S. hotel industry is expected to see modest gains for year-end 2013 and in 2014, according to the updated U.S. forecast released by STR last week during the 5th annual Hotel Data Conference.
For 2013, the industry is expected to record a 1.4-percent increase in occupancy to 62.2 percent, an average-daily-rate gain of 4.2 percent to US$110.61 and a revenue-per-available-room increase of 5.7 percent to US$68.85.
Supply and demand are expected to end the year with increases of 0.8 percent and 2.2 percent, respectively.
“The outlook for the U.S. industry is very positive for the next 18 months,” said Amanda Hite, president and COO at STR. “The industry will continue with favorable supply and demand conditions that will position the industry to see RevPAR growth driven mainly by ADR. Supply growth will increase in 2014 to 1.1 percent but remains below the long-term average of 1.7 percent. The industry is poised for robust RevPAR growth of 5.7 percent in 2013 and 6.0 percent in 2014.”
In 2014, STR predicts occupancy to grow 1.3 percent to 63.1 percent, ADR to rise 4.6 percent to US$115.73 and RevPAR to grow 6.0 percent to US$72.97.
Among the Chain Scale Segments, STR predicts the Luxury Segment to report the largest increases at year-end 2013 in all three key performance metrics. The segment is expected to increase 2.3 percent in occupancy, 5.4 percent in ADR, and 7.8 percent in RevPAR.
Among the Top 25 Markets, three markets are predicted to end 2013 with double-digit RevPAR increases: Houston, Texas; Oahu Island, Hawaii; and San Francisco/San Mateo, California. Washington, D.C., is the only market predicted to report a RevPAR change of flat to a 5.0-percent decrease.
STR (www.str.com) provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering the United States, Canada, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, global pipelines and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics and Hotel News Now.
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