Hoteliers are Optimistic about the Future of the Industry

(June 12, 2013) Last week, hotel industry experts were uniformly upbeat at New York University’s annual International Hospitality Industry Investment Conference. Smith Travel Research (STR) set the tone with its forecast of 5.8% growth in U.S. revenue per available room this year. Randell Smith, STR’s chairman and co-founder, noted that room demand “has literally been on a tear since we came out of this downturn.”

PricewaterhouseCoopers, which uses statistics from STR and other firms, projected even higher RevPAR growth next year, reaching 6.2% in 2014 due to the improving economy and the still slow increase in the supply of new hotels. With demand outpacing the growth in the supply of rooms, the firm expects occupancy levels to reach 62.2%, the highest since 2007.

Economic factors are working in the industry’s favor, including gains in household wealth, decreasing household debt, a gradual improvement in the job market, and higher consumer confidence. Strong international tourism is also expected to play a role in increasing demand.

“From all measurements, 2012 was a breakout year,” said Choice Hotels International CEO and conference panelist Stephen Joyce. “We should see a four- to five-year incredible run.”

 

More News on Industry Forecasts:

“U.S. hoteliers optimistic for 2014” (TravelWeekly.com, June 9, 2013)

“Hotels Expect Best Year since 2007” (USA Today, June 7, 2013)

“Static supply, heady demand gives industry boost” (HotelManagement.net, June 3, 2013)

“Hotels & Lodging Stock Outlook – April 2013 – Industry Outlook” (NASDAQ.com, April 9, 2013)

“2013 Lodging Industry Forecasts and Other Highlights from the 2013 ALIS Conference” (DuffHospitalityLaw.com, January 30, 2013)