UNITED STATES The U.S. hotel industry is projected to end 2010 with increases in two of the three key performance measurements, according to STR’s latest forecast update.
STR projects 2010 occupancy will increase 5.3% to 57.4%, while ADR is expected to end the year virtually flat, falling 0.1% to US$97.92. RevPAR is projected to rise 5.2% to US$56.23. Supply is expected to grow 2% during 2010, and demand is projected to increase 7.4%.
“2010 has been a better year than anyone expected in January,” says STR President Mark Lomanno. “Demand has been a pleasant surprise, and it really is the driver behind the kind of year we’ve experienced. With that said, hoteliers need to take advantage of the pricing power they’ve been given because of the increased demand. Our forecast reflects that there will be a movement toward increased rates in 2011.”
In 2011, STR is projecting increases in all three key performance metrics. Occupancy is expected to rise 1.6% to 58.3%, ADR to increase 3.9% to US$101.73, and RevPAR is projected to end the year up 5.5% to US$59.35.
Supply during 2011 is expected to end the year with a 0.9% increase, and demand is projected to rise 2.5%.