Revised NYU Forecast for Corporate Hotel Rate Negotiations Predicts Even Bigger Boon for Buyers

Corporate rates could increase even less than first forecast for 2017, according to Bjorn Hanson, a clinical professor for the NYU School of Professional Studies Jonathan M. Tisch Center for Hospitality and Tourism. Hanson has revised his previous projection that corporate rates will increase between 3.25 percent and 4 percent, saying now that they will increase between 2.75 percent and 3.5 percent. Hanson's estimates are based on interviews with hotel industry executives and corporate travel executives and on analysis of industry financial data, press releases and hotel and brand websites. His revision comes in light of slowing rate growth in the U.S. hotel industry and lackluster RevPAR gains from hoteliers during the third quarter.