The U.S. hotel industry is expected to exceed forecasts and end 2014 with a 4.5% increase in demand, the largest increase since 2011, according to STR and Tourism Economics’ most recent forecast.
In 2015, STR and Tourism Economics predict occupancy to rise 1.1% to 65.1%, ADR to increase 5% to US$121.37 and RevPAR to grow 6.2% to US$79.06. Demand is expected to increase 2.4%, and supply is predicted to increase 1.3% in 2015.
“We are forecasting occupancy to end at 64.4%, a level the industry hasn’t seen since 1996,” said Amanda Hite, president and COO of STR. “The forecasted actual average daily rate and revenue per available room will also set records, as both of those metrics are expected to end at the highest rates we’ve seen since STR started tracking data in 1987. We expect the momentum to carry over into 2015, as more positive performance is on the horizon for the hotel industry.”
In 2014, STR and Tourism Economics expect occupancy to increase 3.7% to 64.4%, ADR to grow 4.6% to US$115.53 and RevPAR to rise 8.5% to US$74.42. Supply is forecasted to grow by 0.8% for the year.