The U.S. hotel industry is expected to see modest gains for year-end 2013 and in 2014, according to the updated U.S. forecast from STR.
In 2014, STR predicts occupancy to grow 1.3% to 63.1%, ADR to rise 4.6% to US$115.73 and RevPAR to grow 6% to US$72.97. Supply growth will increase in 2014 to 1.1% but remains below the long-term average of 1.7%.
For 2013, the industry is expected to record a 1.4% increase in occupancy to 62.2%, an average-daily-rate gain of 4.2% to US$110.61 and a RevPAR increase of 5.7% to US$68.85. Supply and demand are expected to end the year with increases of 0.8% and 2.2%, respectively.
“The outlook for the U.S. industry is very positive for the next 18 months,” said Amanda Hite, president and COO at STR. “The industry will continue with favorable supply and demand conditions that will position the industry to see RevPAR growth driven mainly by ADR.”
Among the segments, STR predicts luxury to report the largest increases at year-end 2013, increasing 2.3% in occupancy, 5.4% in ADR, and 7.8% in RevPAR.
Among the top markets, three markets are predicted to end 2013 with double-digit RevPAR increases: Houston, Texas; Oahu Island, Hawaii; and San Francisco/San Mateo, California. Washington, D.C., is the only market predicted to report a RevPAR change of flat to a 5% decrease.