The U.S. hotel industry is expected to report strong performance results in summer 2012, according to STR’s summer forecast.
The summer season comprises June, July and August. When comparing against those three months combined in 2011, STR predicts occupancy for those three months combined to rise 1.8% to 69.0%, ADR to increase 3.9 %to US$106.64 and RevPAR to increase 5.7% to US$73.59.
The forecast predicts ADR this summer will near the 2008 peak ADR of US$107.74. The industry is expected to surpass the RevPAR 2007 peak of US$73.26.
“Leisure travel this summer will add to the already compelling demand storyline for the hotel industry,” said Brad Garner, COO at STR. “Consumers should expect to pay 4% higher rates on average for hotel rooms.”
Supply is expected to increase 0.4% this summer and demand to increase 2.1% over the 2011 summer season. Room revenue is expected to rise 6.1% this summer.
Overall in 2012, STR predicts occupancy to rise 1.5% to 60.9%, ADR to be up 4% to US$105.74 and RevPAR to increase 5.5% to US$64.43.
“We expect very little contribution to the overall demand numbers from government transient and group travel,” said Garner. “Additionally, inbound travel from the eurozone will be modest at best. On a positive note, concerns over US$5 gas prices this summer seem to have subsided.”