ATLANTA
Despite a stubbornly high unemployment rate and a low level of consumer confidence, the U.S. hotel industry should see revenue per available room (RevPAR) increase 7.2 percent in 2011, according to a forecast from PKF Hospitality Research.
The increase, announced in the September edition of its Hotel Horizons report, was even more optimistic than the 6.9 percent increase the hospitality industry consultancy predicted in June.
“After reading and hearing recent news reports, many clients have been questioning why we are raising our estimates of revenue growth for the year,” said R. Mark Woodworth, president of PKF-HR. “However, after a thorough analysis of the latest lodging performance and economic data, it is tough not to be optimistic regarding the future of U.S. hotels. It is understandable why so many industry participants are concerned that the apparent stalling of the U.S. economy will lead to a slowdown in travel, but recent history proves otherwise. Our investigation of the relationships between economic factors and lodging fundamentals reveals some deep high correlations that bode well for future lodging demand and pricing.”
PKF upped its 2011 annual average daily rate (ADR) growth forecast to 3.2, but lowered its ADR growth forecast for 2012 to 4.8 percent.
The consultancy said it sees evidence that negotiated corporate rates are starting to rise, but meeting planners are still using their leverage to mitigate group rate increases.
