STR Releases Optimistic 2011/2012 U.S. Hotel Industry Forecast

According to STR's latest forecast update, the U.S. hotel industry is projected to end 2011 with increases in all three key performance measurements.

STR projects 2011 occupancy will increase 1.8% to 58.5%, ADR is expected to end the year up 4.2% to US$102.21, and RevPAR is projected to rise 6.1% to US$59.78.

Supply is expected to report slight growth in 2011 with a 0.7% increase, and demand is projected to increase 2.5%.

"The stronger hotel demand fundamentals the U.S. hotel industry experienced in 2010 will result in a quicker turnaround than we had expected," said Mark Lomanno, CEO of STR. "While this strength resulted in rapidly recovering occupancies last year, we look for rebounding room rates to lead RevPAR growth in 2011 and 2012. While it may be the second half of 2011 before we begin to see rapidly accelerating room rates, by the time we get to 2012 we now expect room rate growth to rival the boom years of 2006 and 2007."

STR is also projecting increases in all three key performance metrics during 2012. Occupancy is expected to rise 1.7% to 59.5%, ADR will increase 6.8% to US$109.16, and RevPAR is projected to end the year up 8.6% to US$64.93.

Supply during 2012 is expected to end the year virtually flat with a 0.5% increase, and demand is projected to rise 2.2%.

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