PKF Hospitality Research projected U.S. hotel occupancies
and average daily rates will grow through 2016. "With occupancy levels
expected to exceed the STR long-run average of 61.9 percent in 2013 and beyond,
we are beginning to see operators capitalize on these favorable market
conditions and increase room rates," according to PKF-HR president Mark
Woodworth.
The firm said U.S. hotel supply growth through 2016 annually
would remain below 2 percent, well under the long-term average, leading to
higher occupancies. The average room rate, according to PKF-HR, will increase
"in excess of 4 percent" each year through 2014.
Woodworth also indicated travelers in the coming years increasingly
would trade down to midprice properties from upscale ones. "With
[upper-tier] occupancy levels above the 70 percent mark, lack of availability
during peak periods will become more common at the nation's upper-tier
properties," he predicted.
PKF noted that instability in Iran could disrupt its
forecast, which is based on the assumption that oil will remain below $110 per
barrel throughout this year.
For the shorter-term, PKF-HR forecast that U.S.
hotels this year will realize a 5.8 percent jump in revenue per available room,
resulting from a 1.6 percent rise in occupancy and a 4.1 percent average daily
rate increase. "We have seen six straight quarters of ADR growth, and are
confident forecasting a sustained period of attractive industry profit growth,"
according to Woodworth.