The U.S. hotel industry is projected to end 2010 with increases in two of the three key performance measurements, according to STR’s forecast update.
STR projects 2010 occupancy will increase 4.4 percent to 57.1 percent, average daily rate is expected to end the year virtually flat with a 0.1-percent decrease to US$97.74, and revenue per available room to rise 4.3 percent to US$55.77.
Supply is expected to grow 2.2 percent during 2010, and demand is projected to increase 6.6 percent.
STR projects the industry will end 2011 with increases in all three key metrics. Occupancy is forecast to rise 1.4 percent to 57.9 percent, ADR is expected to be up 3.9 percent to US$101.55, and RevPAR is projected to rise 5.3 percent to US$58.75.
Supply during 2011 is expected to end the year with a 1.1-percent increase, and demand is projected to rise 2.5 percent.