US Hotel Industry Growth Seen to Slow in 2019 and 2020
The US hotel industry is projected to report a further slowdown in performance growth in 2019 and 2020, according to STR and Tourism Economics’ latest forecast. Amanda Hite, STR’s CEO, said that late in 2018, growth in revenue per available room (RevPAR) weakened as strong demand was offset by lower-than-expected rate growth. She said that with demand now softening and supply growth stabilized, STR expects the first year without an increase in occupancy since 2009. When pressure on occupancy levels is combined with “subdued pricing confidence, concerns over labor costs, a cooling economic environment and the negative sentiment brought on by the government shutdown,” Hite said, “you have a recipe for diminished RevPAR growth.” She concluded that performance growth of any amount would still take the industry to another record-breaking level nationally, but that plenty of individual markets and hotels are feeling the slowdown on their bottom line.