Weaker Hotel Performance is Projected for 2018/2019
STR and Tourism Economics are projecting a lower level of hotel performance growth for 2018 and 2019. Amanda Hite, STR’s CEO, said demand for the third quarter came in lower than expected. Still, she said the macroeconomic environment remains favorable overall and the industry’s record-breaking growth should continue at least through 2019, even with softening in overall growth. For 2018, the hotel industry is projected to report an 0.4 percent increase in occupancy to 66.2 percent, a 2.6 percent rise in average daily rate (ADR) to $129 and a 3 percent increase in revenue per available room (RevPAR) to $86. For 2019, the forecasters project the U.S. hotel industry to report an 0.1 percent upturn in occupancy to 66.2 percent, a 2.3 percent lift in ADR to $133.04 and a 2.4 percent rise in RevPAR to $88.07, which would mark the first time since 2010 the RevPAR increase would be below 3 percent.