STR and Tourism Economics project the U.S. hotel industry will see occupancy increase 0.3%, ADR increase 2.4% and RevPAR jump 2.7% in 2018 as demand continues to outpace supply. Both companies project similar growth in 2019 but a slimmer gap between demand growth and supply growth.
HENDERSONVILLE, Tennessee—The U.S. hotel industry is projected to post record-breaking performance levels through 2019, according to STR and Tourism Economics’ initial forecast of 2018 released this week at the Americas Lodging Investment Summit (ALIS).
“After another record year in 2017, we’re looking at continued growth in 2018 fueled by strong underlying economic indicators and upgraded GDP forecasts,” said Carter Wilson, STR’s VP of consulting & analytics. “Coupled with moderating supply growth and a slight uptick in pricing power, the industry should see record fundamentals through 2019.”
The U.S. hotel industry is projected to report a 0.3% increase in occupancy to 66.1%, a 2.4% rise in average daily rate (ADR) to US$129.77 and a 2.7% lift in revenue per available room (RevPAR) to US$85.82. RevPAR grew at least 3.0% for each year from 2010 to 2017.
The Luxury and Independent chain scale segments are now likely to report the largest increases in occupancy (+0.4%). Independent hotels are projected to post the most substantial growth in ADR (+2.5%) and RevPAR (+2.9%). The lowest rate of RevPAR growth is projected in the Upscale segment (+1.8%).
For 2019, STR and Tourism Economics project the U.S. hotel industry to report a 0.1% increase in occupancy to 66.2%, a 2.3% lift in ADR to US$132.81 and a 2.4% rise in RevPAR to US$87.89.
The highest overall rate of RevPAR growth is expected in the Luxury segment (+2.4%), while the lowest is projected among Upscale (+1.9%) and Upper Midscale (+1.9%) chains.
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