RevPAR of Hotels in USA Forecast to Drop 50.6% in 2020

STR and Tourism Economics have predicted the U.S. hotel industry will report a 50.6% decline in RevPAR in 2020.

Supply is forecast to decline by 14.9%, demand by -51.2%, occupancy by -42.6% to 37.9%, ADR by -13.9% to US$112.91, and RevPAR by -50.6% to US$42.84.

“Travel has come to a virtual standstill, but we expect the market to begin to regain its footing this summer,” said Adam Sacks, president of Tourism Economics. “Once travel resumes, the combination of pent-up travel demand and federal aid will help fuel the recovery as we move into the latter part of this year and next year.”

“The industry was already set for a non-growth year, now throw in this ultimate ‘black swan’ event, and we’re set to see occupancy drop to an unprecedented low,” said Jan Freitag, STR’s senior VP of lodging insights. “Our historical database extends back to 1987, and the worst we have ever seen for absolute occupancy was 54.6% during the financial crisis in 2009. With roughly six of 10 rooms on average empty, already wavering pricing confidence will take a significant hit and drop ADR to a six-year low.”

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