More than 50% of attendees who participated in a
survey at STR’s inaugural Hotel Data Conference presented by
Magnuson Hotels on 4-5 August believe the industry’s RevPAR will
not start to recover until at least the second half of 2010 or
“We're encouraged that the majority of attendees
think the worst is behind us and they can see a gradual
improvement on the horizon,” said Mark Lomanno, president of STR.
“Hopefully the attendees are correct in their assessment of a
potential recovery. If that is indeed the case, that should mean
pricing power for hotels will return in a time frame that will
allow for a stronger foundation to be built in the not-too-distant
The survey compiled responses from 88 of the more
than 200 conference attendees at the Renaissance Nashville Hotel.
33% of the respondents believe RevPAR will
not start to recover until 2011 or beyond, 23.9% believe it
will start to recover during third-quarter 2010, and 21.6%
believe it will start to recover during fourth-quarter 2010.
According to respondents, 25% believe occupancy will
start to recover in the second quarter of 2010. More than one in
10 believe occupancy may take a bit more time to recover and
expect an upswing during third-quarter 2010. Other respondents
were a bit more optimistic, 20.5% believe occupancy will
start to recover in first-quarter 2010.
When asked when
average daily rate will start to recover, 34.1% of
respondents believe ADR recovery won’t start until 2011 or beyond,
30.7% believe it will start to recover in fourth-quarter
2010, and 15.9% believe it will start during third-quarter
Looking back at the January 2008 rates, 50.6%
of the respondents believe it will take three to five years to
reach those rates again, followed by 24.1% who believe it
will take six to eight years.
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