RevPAR declines in the U.S. are expected to
continue into the convention season according to STR’s revised
monthly forecast. The company also revised its forecasts for
year-end 2009 and 2010.
STR’s forecast projects 2009 occupancy to be
down 8.4% to 55.4% and ADR to decline 9.7% to US$96.43. It
projects RevPAR to end 2009 with a 17.1% decrease to US$53.41.
Supply in 2009 is projected to increase 3%, while demand is
expected to end the year down 5.5%.
Looking at the third and fourth quarters of
2009, decreases are expected to slow in occupancy and demand
percent change when compared with the later part of 2008.
November is the only month with forecast
demand growth in year-over-year comparisons.
“Our slight downward revision in the 2010 U.S.
lodging RevPAR forecast is due to the higher supply growth number
we now expect next year,” said Mark Lomanno, president of STR.
“That upward adjustment is the result of the significant decline
in the number of hotel rooms that are actually closing their doors
in this economic cycle. Our previous assumptions for room closings
were substantially higher than we now expect.”
The outlook for 2010 looks slightly better than
2009, but the industry is expected to end 2010 with decreases in
all three key metrics. Occupancy is projected to end the year with
a 0.6% decrease at 55.1%, ADR is forecasted to decline 3.4% to
US$93.16, and RevPAR is expected fall 4.0% to US$51.26.
Supply and demand in 2010 are both projected to
end the year with positive growth. Supply is predicted to be up
1.8% and demand is expected to increase 1.3%.
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