Categorized | Hotels

STR RELEASES “OPTIMISTIC” HOTEL FORECAST FOR 2010, 2011…

Posted on 16 August 2010

Smith Travel Research has revised its lodging forecast through 2011, saying it expects the U.S. hotel industry to do better this year than previously predicted. STR projected that occupancy for 2010 will increase 4.4% compared with the previous year, to 57.1%. In June, the company had said it expected 2010 occupancy to reach 56.7%. Average daily rate is expected to end the year virtually flat at $97.74-slightly better than June’s forecast-while revenue per available room is expected to rise 4.3% to $55.77, also beating the company’s previous projections. STR said it expects hotels nationwide to fill 57.9% of their rooms in 2011. Average daily rate is expected to rise to $101.55, while revenue per available room is projected to increase from the previous year to $58.75.

 

Extended stay hotels are posting strong gains in occupancy this year, and analysts said the hotels are likely to achieve rate increases by year-end. Although major extended-stay brands still report ambitious development plans, additional extended stay supply in the U.S. is expected to dwindle considerably in the coming years. Overall U.S. extended stay occupancy for the quarter increased to 67.7%, up 10.4% from 2009 levels. While extended stay hotel occupancy remains at its lowest levels in several years, it is still 15 percentage points higher than overall hotel occupancy, according to Smith Travel Research.

Source; Orlando Sentinel

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