Why Hotels Now?
Hotel Rates are expected to climb in the 3.6% - 3.7% range this year alone due to the growing demand and short supply of hotel rooms, according to a study by TravelClick. The company is New York based, providing software and business data for major hotel chains around the world.
The rebound has being boosted by the continued resurgence of business travel, which generates the lion's share of revenue for the hotel industry, according to TravelClick.
STR: US Hotels Report Strong Results in 2011
The U.S. hotel industry reported increases in all three key performance metrics in 2011:
- Overall, the U.S. hotel industry's occupancy rose 4.2%
- ADR (average daily rate) was up 3.8%
- RevPar (revenue per available room) increased 8.2%
Presented at the Americas Lodging Investment Summit, January 2012
"Indeed the world did recover. We sold more rooms (in the U.S.) than ever last year" said Jan Freitag of PKF in front of 2400 attendees. "The skids are greased for the year ahead as well.
Supply's not an issue. Demand's outpacing
supply."
Other highlights from the Summit:
- HVS is forecasting dollar volume of $10.6
billion for 2012
- 41 of the 50 major U.S. markets tracked by PKF are at or above their previous demand peaks
Occupancy On the Rise
By Randy Smith, Chairman, STR
HotelNewsNow.com, January 2012
With low supply growth combined with high demand growth, room occupancy showed considerable improvement during 2011.
On a seasonally adjusted basis, we entered the year with occupancy at 57.9% in January and by December, it had climbed to 60.5%.
While most of this improvement happened during the first part of last year, the industry was able to maintain occupancies at a level that has not been achieved since early 2008.
Sources: STR Global, www.str.com, TravelClick, www.travelclick.com, www.pkf.com, http://alisconference.com, and www.hotelnewsnow.com/Articles.aspx/7345/Operating-margins-expected-to-rise-in-2012
