During the annual Historic Hotels of America conference, PKF Hospitality Research released a five-year forecast for the U.S. lodging industry that reveals a full recovery for historic hotels from the economic downturn of 2007. Meanwhile, contemporary hotels continue to lag.
The report is based on performance data sourced from STR, as well as economic forecasts from CBRE Economic Advisors.
“The data strongly supports the idea that many consumers favor and will pay more for the unique hotel experience historic properties can offer,” says Mark Eble, managing director and Midwest practice leader for PKFC-USA | CBRE Hotels.
In comparison to comparable contemporary hotels, historic properties are achieving a higher premium in ADR and RevPAR, which is expected to grow at a compound average annual rate of 4.2 percent over the next five years. This growth is expected to be mostly attributable to increases in ADR.
In 2014, historic hotels—whether members of Historic Hotels of America or not—had an average ADR of $262.27, which is 17.7 percent more than contemporary hotels.
Properties that are members of Historic Hotels of America members will continue to see annual occupancy levels that total 8 to 10 percentage points more than the national average through 2019.
