Average daily rate for U.S. hotels this summer will rise
slightly compared with last, according to an updated summer forecast released
by Smith Travel Research on Monday.
The firm now projects that rates from June to August will be
up 0.1 percent compared with the same period last year. The highest rate growth
will be in August, projected to be up 0.8 percent, according to the forecast.
In its summer forecast issue last month, the firm projected a 1.9 percent decline in rates for the summer.
Smith Travel Research COO Brad Garner said effects from the
oil spill could counter the projected rate increase. "It remains to be
seen how much demand will be re-accommodated and at what price or rate,"
he said in a statement.
Smith Travel Research also upped its expectations for
occupancy and revenue per available room. The new forecast projects a 4.5
percent year-over-year increase in RevPAR during the summer and a 4.3 percent
increase in occupancy. Last month's forecast projected flat RevPAR levels and a
2.2 percent increase in occupancy.
The industry, however, is
digging itself out of a deep hole from last year. In 2009, summer rates were
down 9.6 percent year-over-year, while occupancy was down 9.1 percent and
RevPAR down 17.8 percent.