HVS: By 2013, U.S. Hotel Rates Will Top 2008 Levels - Business Travel News

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HVS: By 2013, U.S. Hotel Rates Will Top 2008 Levels

September 28, 2010 - 03:00 PM ET

By Michael B. Baker

Lodging consulting firm HVS on Tuesday issued a forecast predicting year-over-year rate growth through 2015 for the U.S. hotel industry along with "stabilized levels of operation" by 2014.

While HVS projects that 2010 will end with overall rates down 1 percent from 2009 levels, it forecasts them to be up by 4.5 percent in 2011. In the three following years, HVS said rates would grow by at least 5 percent each year, which means they would top 2008 levels by 2013.

HVS also projects steady occupancy growth during those years before stabilizing at 62.7 percent in 2014. The firm said business travel and group travel would strengthen in 2012 and 2013, as employment levels increase.

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