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Summer forecast predicts strong US hotel performance

Summer forecast predicts strong US hotel performance

The U.S. hotel industry is expected to report strong performance results in summer 2012, according to STR’s summer forecast.

The summer season comprises June, July and August. When comparing against those three months combined in 2011, STR predicts occupancy for those three months combined to rise 1.8 percent to 69.0 percent, average daily rate to increase 3.9 percent to US$106.64 and revenue per available room to increase 5.7 percent to US$73.59.

The forecast predicts ADR this summer will near the 2008 peak ADR of US$107.74. The industry is expected to surpass the RevPAR 2007 peak of US$73.26.

“Leisure travel this summer will add to the already compelling demand storyline for the hotel industry,” said Brad Garner, COO at STR. “Consumers should expect to pay 4.0 percent higher rates on average for hotel rooms.

“We expect very little contribution to the overall demand numbers from government transient and group travel,” Garner continued. “Additionally, inbound travel from the eurozone will be modest at best. On a positive note, concerns over US$5 gas prices this summer seem to have subsided.”


Supply is expected to increase 0.4 percent this summer and demand to increase 2.1 percent over the 2011 summer season. Room revenue is expected to rise 6.1 percent this summer.

Overall in 2012, STR predicts occupancy to rise 1.5 percent to 60.9 percent, ADR to be up 4.0 percent to US$105.74 and RevPAR to increase 5.5 percent to US$64.43.