hotel industry
Hospitality Directions US
Hospitality and Leisure
November 2013
Q3
At a glance
Lodging’s recovery continues, driving fewer vacancies and higher rates, particularly among hotels in higher-priced segments.
Our outlook anticipates a
5.5% RevPAR gain in 2013, improving to 5.9% in 2014 with stronger economic growth. Group bookings for 2014 have improved, supporting gains relative to this year.
Construction activity has resumed, but is still at low levels.
Occupancy levels at hotels in higher-priced segments are ahead of prior peak levels, real RevPAR is above its long-term average, and supply growth is slow.
The federal-government shutdown disrupted lodging demand in specific markets, but the broader recovery in demand continues and ADR levels are moving higher.
Barring a fiscal policy mishap that upsets the broader economic recovery, we anticipate revenue per available room (RevPAR) growth of 5.5% and 5.9% in 2013 and 2014, respectively—only slightly below our expectations at the start of the year. Construction activity has resumed, but is still at low levels and supply growth remains slow.
In this issue
Fewer vacancies, higher rates 1
Fiscal restraint weighs on growth, but underlying momentum persists 3
Our outlook for the US lodging industry 7
Our chain scale outlook 16
An eye on supply 25
Contact us 26
Fewer vacancies, higher rates
Aside from weakness in markets with a heavy dependence on the federal government, such as the Washington DC metro area, the year has been characterized by continued gains in occupancy levels with steadily increasing ADR. Our expectation for RevPAR growth of 5.5% for the year is short of the 6.7% gain achieved by the industry last year, but represents favorable growth considering the circumstances.
Last November, we anticipated
RevPAR growth of 5.4% in
2013, with the supporting assumption that economic growth would strengthen to
2.9% on a
Hospitality and Leisure
November 2013
Q3
At a glance
Lodging’s recovery continues, driving fewer vacancies and higher rates, particularly among hotels in higher-priced segments.
Our outlook anticipates a
5.5% RevPAR gain in 2013, improving to 5.9% in 2014 with stronger economic growth. Group bookings for 2014 have improved, supporting gains relative to this year.
Construction activity has resumed, but is still at low levels.
Occupancy levels at hotels in higher-priced segments are ahead of prior peak levels, real RevPAR is above its long-term average, and supply growth is slow.
The federal-government shutdown disrupted lodging demand in specific markets, but the broader recovery in demand continues and ADR levels are moving higher.
Barring a fiscal policy mishap that upsets the broader economic recovery, we anticipate revenue per available room (RevPAR) growth of 5.5% and 5.9% in 2013 and 2014, respectively—only slightly below our expectations at the start of the year. Construction activity has resumed, but is still at low levels and supply growth remains slow.
In this issue
Fewer vacancies, higher rates 1
Fiscal restraint weighs on growth, but underlying momentum persists 3
Our outlook for the US lodging industry 7
Our chain scale outlook 16
An eye on supply 25
Contact us 26
Fewer vacancies, higher rates
Aside from weakness in markets with a heavy dependence on the federal government, such as the Washington DC metro area, the year has been characterized by continued gains in occupancy levels with steadily increasing ADR. Our expectation for RevPAR growth of 5.5% for the year is short of the 6.7% gain achieved by the industry last year, but represents favorable growth considering the circumstances.
Last November, we anticipated
RevPAR growth of 5.4% in
2013, with the supporting assumption that economic growth would strengthen to
2.9% on a