Hotel Forecasters See Q3 Recovery In Key Markets

Revenue per available room in full-service hotels in eight of the top 10 domestic markets is expected to recover in the third quarter, according to research findings released today by Boston-based Torto Wheaton Research and Atlanta-based Hospitality Research Group, the research arm of PKF Consulting.

For buyers, the findings suggest that their bargaining power in 2003 rate negotiations in these cities, including Atlanta, Boston, Houston, Los Angeles, New York, Orlando, San Francisco and Washington, D.C., may not be as great as they had expected.

Dallas and Chicago are the remaining two markets in Torto and HRG's top 10 listing. RevPAR in full-service Dallas hotels is expected to turn around in the second quarter, while in Chicago the turnaround will be delayed until the fourth quarter.

The forecast is among the little positive news the lodging industry has had in recent months, as hotels have continued to struggle with depressed occupancy rates and room revenues resulting from cutbacks in business travel.