U.S Hotel Occupancy Riding Record Wave

U.S. hotel occupancy will maintain record levels through 2017, according to PKF Hospitality Research’s December Hotel Horizons. The firm expects occupancy to linger at 66 percent and demand growth to outpace supply growth during the next two years. PKF projects average daily rates to increase 5.5 percent in 2016 and another 5.8 percent in 2017. “Given the modest growth projected for inflation, real ADRs are now returning to their previous peak,” said PKF senior managing director Mark Woodworth. He added that PKF is unable to forecast noneconomic risks based on international security threats. “Based on what we do know and feel comfortable forecasting, the probability of an economic downturn in U.S. hotel industry performance remains remote.”