The Q1 Industry Statistics Update shows key economic metrics that relate to the hotel industry’s recent performance and near-term forecast. The general consensus for 2019 indicates another good year ahead, albeit with softer RevPAR growth at 2.3%, compared to 3.0% in 2018, attributed to a forecasted uptick in ADR, as occupancy is expected to remain flat given the anticipated 1.9% increase in new supply. Hoteliers should continue to see an increase in third-party booking activity, as has been the trend over the last several years; the cost of sales for OTA business is much higher than bookings through the hotel’s website, which is affecting the bottom line. According to research, despite a rise in interest rates and softened RevPAR growth in recent months, equity yields have continued to decline. As of February 2019, industry experts anticipate general stability in the Federal interest rate this year, which is a much more conservative prediction than in recent months because of softening economic conditions, followed by an expected rate cut in late 2020.
Jerod Byrd, MAI is Managing Director, Senior Partner and Director of Operations of the HVS Philadelphia Consulting and Valuation division. Jerod earned his bachelor’s degree in the hospitality and real estate programs from The University of Memphis and has gained front-line experience in both restaurant and hotel operations. Jerod also gained valuable internship experience with a private real estate equity firm. Jerod travels and works extensively in the mid-Atlantic region. He is a state certified general appraiser. Contact Jerod at (901) 481-3058, or email@example.com.
Logos, product and company names mentioned are the property of their respective owners.