Economy Watch: Hotels on Track for Strong 2017
- Nov 28, 2017
The U.S. hotel industry is projected to record stronger-than-expected growth for 2017, according to STR and Tourism Economics’ final forecast of 2017, which was published recently.
Predictions for the full-year 2017 suggest the U.S. hotel industry will enjoy a 0.5 percent increase in occupancy to 65.7 percent; a 2.1 percent rise in average daily rate (ADR) to $126.66; and 2.5 percent growth in revenue per available room (RevPAR) to $83.23. RevPAR grew more than 3 percent for each year from 2010 to 2016, according to the report.
The Midscale and Independent segments of the industry are likely to report the largest increases in occupancy (up 0.9 percent). Independent hotels are also projected to post the most growth in ADR (up 2.8 percent) and RevPAR (up 3.7 percent). The lowest rate of RevPAR growth is projected in the Upscale segment (up 1.1 percent).
Seventeen of the top 25 U.S. markets are forecast to post flat to growing RevPAR for the full year. Most of those markets will see an increase between no growth and 5 percent, while four are projected to experience growth in the range of 5 percent to 10 percent: Detroit, Houston, Orlando and Seattle.