STR has updated its industry forecast for the
U.S. hotel industry which now shows smaller increases in all three
key performance metrics for year-end 2012. STR's revised 2012
- a 0.2% increase in occupancy to 60%;
- a 3.7% jump in ADR to US$105.29; and
- a 3.9%
rise in RevPAR to US$63.18.
STR also predicts that 2012 year-over-year
demand will increase 1.1% and supply will rise 0.9%.
STR now expects the U.S. hotel industry to end 2011
with a 4% occupancy increase to 59.9%, a 3.6% increase in ADR to
US$101.58, and a 7.7% increase in RevPAR to US$60.81. Supply in
2011 is forecast to rise slightly (0.7%) and demand is expected
to end the year with a 4.7% increase.
"While we are still confident industry
performance will remain positive during 2012, we are concerned
about the lack of growth in the overall macro-economic
indicators," said Amanda Hite, president of STR. "In addition, the
stronger-than-expected demand growth for hotels this year will
make for difficult year-over-year comparisons in 2012. Our revised
forecast reflects an industry posting record levels of demand,
operating in an environment where the economic fundamentals cannot
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