STR, TE forecast continued growth through 2017
STR, TE forecast continued growth through 2017
01 FEBRUARY 2016 7:31 AM
For 2016, the U.S. hotel industry is predicted to report a 0.6% increase in occupancy to 65.9%, a 4.4% rise in ADR to $125.30 and a 5% increase in RevPAR to $82.60.
HENDERSONVILLE, Tennessee—The U.S. hotel industry is projected to experience continued year-over-year performance increases through 2017, according to STR and Tourism Economics’ first forecast of 2016.
For 2016, the U.S. hotel industry is predicted to report a 0.6% increase in occupancy to 65.9%, a 4.4% rise in average daily rate to US$125.30 and a 5.0% increase in revenue per available room to US$82.60. During that same period, demand growth (+2.3%) is expected to outweigh supply growth (+1.7%). 
“We are projecting healthy RevPAR growth in 2016, and RevPAR will continue to be driven by room rate,” said Jan Freitag, STR’s senior VP for lodging insights. “We expect ADR to rise 4.4%, which is the same level of increase as 2015. At the same time, industry occupancy is at an all-time high. Even a small year-over-year increase will lead us to another record year for occupancy.” 
Among the Chain Scale segments in the U.S., Economy is expected to report the largest increase in occupancy (+0.9%) during 2016. Upper Upscale is projected to see the greatest rise in both ADR (+4.6%) and RevPAR (+5.2%).  
For 2017, STR projects the U.S. hotel industry to post a 0.2% increase in occupancy to 66.1%, a 4.3% rise in ADR to US$130.63 and a 4.5% increase in RevPAR to US$86.28. 
Also in 2017, demand growth (+2.1%) is once again expected to be higher than supply growth (+1.9%). Demand growth in the U.S. has outpaced supply growth each year dating back to 2010.

Media Contacts:
Jeff Higley 
STR, Inc.
VP, Digital Media & Communication
+1 (615) 824 8664 ext. 3318

Nick Minerd
STR, Inc.
Public Relations Coordinator
+1 (615) 824 8664 ext. 3305

Aran Ryan
Tourism Economics
Director of Lodging Analytics

No Comments

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.