Coming as it did not too long after the conclusion of last month’s IPW in Anaheim, California, the projection by one of the U.S. hotel industry’s top authorities that demand is expected to decrease makes one wonder just how a mixed outlook for the hotel industry in the United States will impact the tour and travel industry next year.
As reported by Hotel News Now (HNN) in its coverage of the recent NYU International Hospitality Industry Investment Conference: “The pace of overall U.S. hotel industry growth has slowed, due in part to rising supply, growing expenses and less-than-aggressive pricing of average daily rate. But industry analysts point to some bright spots, like demand, group performance and a steady overall economy, that are contributing to forward motion, even if it comes at a slower pace.”
The account is rich in its coverage of the session that warranted the above conclusion—its featured speakers were Amanda Hite, president of the hotel industry research firm STR (STR is the parent company of Hotel News Now) and HVS President and CEO Stephen Rushmore Jr.—and revealed some newsy items, such as the following:
—STR’s latest forecast, prepared in partnership with Tourism Economics, is summarized in the following graphic.
— According to HVS, the markets that will have the most RevPAR growth over the next two years: San Francisco; Anaheim, California; Cleveland; Cincinnati; Chicago; Seattle and Atlanta.
—Hite also said that taking inflation into account, the U.S. hotel industry has in fact seen declining ADR growth for the last three months.
—Four of STR’s six class segments—midscale and economy (the six class segments are: Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale and Economy) now show supply growth outpacing demand growth.
For the complete HNN article click here.