The U.S. hotel industry is expected to report increases in performance results in summer 2013, according to STR’s summer forecast.
Comprising of June, July, and August, STR predicts occupancy increases from 1 percent to 70 percent, while ADR will increase 4.4 percent to $112.21. Revenue per available room (RevPAR) will grow 5.4 percent to $78.50.
“Despite tougher comps over the last two summers, demand for hotels rooms will increase by 2 percent this season,” says Brad Garner, COO of STR. “We expect concerns and perceptions of the on-going government sequestration to directly replace concerns normally associated with increases in fuel prices during the summer. We further expect the sequester concerns to have very little measurable impact on summer performance.”
Overall in 2013, STR expects the hotel industry’s occupancy to rise 0.8 percent to 61.9 percent, its ADR to increase 4.9 percent to $111.27, and its RevPAR to be up 5.7 percent to $68.86. Supply this summer is expected to increase 1 percent and demand is projected to rise 2 percent. Total room revenue is forecasted to grow by 6.4 percent.
