publication date: Nov 21, 2011
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author/source: Smith Travel Research
Smith Travel Research Updates 2011, 2012 Forecasts
The U.S. hotel industry is expected to report smaller increases in all
three key performance metrics for year-end 2012 than previously
forecasted, according to STR’s updated industry forecast.
• a 3.7-percent jump in average daily rate to US$105.29; and
• a 3.9-percent rise in revenue per available room to US$63.18.
STR also predicts that 2012 year-over-year demand will increase 1.1 percent and supply will rise 0.9 percent.
The U.S. hotel industry is expected to end 2011 with a 4.0-percent
occupancy increase to 59.9 percent, a 3.6-percent increase in ADR to
US$101.58, and a 7.7-percent increase in RevPAR to US$60.81. Supply in
2011 is forecasted to rise slightly (0.7 percent) and demand is expected
to end the year with a 4.7-percent increase.
The change in the forecast is a result of the continuing global
economic uncertainty and the tougher year-over-year comparisons the
industry will face in 2012.
"While we are still co
nfident industry performance will remain
positive during 2012, we are concerned about the lack of growth in the
overall macro-economic indicators," said Amanda Hite, president of STR.
"In addition, the stronger-than-expected demand growth for hotels this
year will make for difficult year-over-year comparisons in 2012. Our
revised forecast reflects an industry posting record levels of demand,
operating in an environment where the economic fundamentals cannot be
ignored.”
