Categorized | Hotels

Hotels to Experience Moderate Growth in 2012 Across All Travel Segments…

Posted on 30 November 2011

According to TravelClick’s November 2011 North American Hospitality Review, all travel segments — business travel, leisure travel and group business — are experiencing moderate gains in demand and room rate for the next 12 months. The North American Hospitality Review is based on actual hotel bookings from Q4 2011 through Q3 2012.

 

For this period, committed occupancy is up 3.3 percent year-over-year, average daily rate (ADR) is up 4 percent and revenue per available room (RevPAR), a top-line indicator, is tracking ahead by 5.9 percent. The business travel segment, which represents 47 percent of all transient rooms reserved for the next 12 months, will see a 6.7 percent RevPAR gain.

 

Markets showing the most year-over-year occupancy growth include:

Top Five Strongest U.S. Travel Markets
 
  Committed Occupancy Reserved ADR Reserved RevPAR
Charlotte 26.0% 2.8% 13.9%
Detroit 14.8% 4.1% 17.5%
Indianapolis 11.3% 1.9% 1.6%
Houston 9.7% 2.6% 9.5%
Seattle 9.2% -0.3% 5.8%

 

Markets that show negative occupancy growth include:

Top Five Weakest U.S. Travel Markets
 
  Committed Occupancy Reserved ADR Reserved RevPAR
Honolulu -8.1% 13.7% 19.2%
Minneapolis St. Paul -6.6% 7.5% 4.1%
Denver -5.9% -4.8% -11.4%
Dallas -4.6% 1.0% 3.3%
Phoenix -2.1% 2.4% -1.8%

 

“Throughout 2011, business travel has been the primary driver for hotel demand and that trend continues in 2012,” said Tim Hart, executive vice president, business intelligence, TravelClick. “While business travel remains strong, overall demand has slowed and the industry is not experiencing the robust ADR growth that many had hoped for. As we gear up for a new year, sustained growth may not be a guarantee.”

 

Fourth Quarter 2011 (October 2011 – December 2011)

 

Committed occupancy continues to increase in the fourth quarter of 2011, up 2.3 percent from Q4 2010, with ADR and RevPAR up 4.0 percent and 5.7 percent respectively. RevPAR posted a moderate 3.3 percent gain year-over-year in October 2011, however, it is expected to increase 9.3 percent in November and 8.2 percent in December 2011.

 

Markets that show above average year-over-year occupancy growth throughout the rest of the fourth quarter are Detroit (22.1 percent), Tampa (13.1 percent) and Seattle (12.7 percent). Markets showing below average growth are Atlanta (-9.2 percent), Denver (-7.5 percent) and Honolulu (-5.5 percent).

 

First Quarter (January 2012 – March 2012)

 

According to the report, RevPAR in Q1 2012 is expected to increase 7.6 percent from the prior year — up 13.4 percent in January, down 2.1 percent in February and 9.5 percent higher in March. This is the highest quarterly RevPAR gain in a year. Demand throughout all customer segments continues to show moderate improvement, with group demand up 1.3 percent, leisure up 4.6 percent and business up 1.8 percent.

 

Markets showing strong year-over-year occupancy growth in the first quarter of 2012 are Indianapolis (33.7 percent), Detroit (20.4 percent) and Chicago (21.9 percent). Markets showing negative occupancy growth are Dallas (-24.0 percent), Tampa (-13.1 percent) and Washington DC (-8.9 percent).

Read more: http://www.sacbee.com/2011/11/29/4086420/hotels-to-experience-moderate.html#ixzz1fDClrS1J

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