Growth in both hotel demand and the average daily rate continued to propel a hotel index that historically has signaled turning points in hotel business activity.
The United States Hotel Industry Pulse Index increased 2.2 percent during August after edging up 2.5 percent during July, according to economic research firm e-forecasting.com in conjunction with Smith Travel Research.
HIP, the Hotel Industry Pulse Index, is a composite indicator that gauges real-time business activity in the U.S. hotel industry, similar to a GDP measure. The latest monthly change brought the index to a reading of 89.9. The index was set to equal 100 in 2000.
HIP's six-month growth rate, which historically has signaled turning points in U.S. hotel business activity, continued to improve. After 20 months of consecutive decreases, the rate has increased seven consecutive months. August’s 18 percent increase improved upon July's growth of 15.2 percent. This compares with a long-term growth rate of 3.2 percent, which is the same as the 38-year average annual growth rate of the industry's gross domestic product.
“The growth in both demand and more recently, average daily rate, continues to propel the HIP,” said Chad Church, director of special services at STR.
