Thursday, December 19, 2013

PKF: U.S. Hotels Poised To Resume Strong Growth



Atlanta, GA – After a slight deceleration in growth during the last half of 2013, PKF Hospitality Research, LLC (PKF-HR) is forecasting very strong gains in revenues and profits for the U.S. lodging industry in 2014 and 2015. 

R. Mark Woodworth
According to the recently released December 2013 edition of Hotel Horizons®, national revenue per available room (RevPAR) is projected to increase by 6.6 percent in 2014, followed by another 7.5 percent boost in 2015. 

Concurrently, hotel profits should enjoy growth of 12.8 percent and 14.5 percent respectively over the next two years.

 “As anticipated, RevPAR growth slowed down a bit in 2013 compared to the previous three years,” said R. Mark Woodworth, president of PKF-HR.

  “Entering the year, we knew fears of falling off the fiscal cliff would create uncertainty in the minds of potential travelers. 

“As the year progressed, the sequester and government shutdown caused additional angst.  However, despite the challenging economic environment, we observed above average growth in lodging demand, average daily rates (ADR), RevPAR and profits.”

 PKF-HR estimates that by year-end 2013, lodging demand will grow by 2.1 percent.  This is greater than the projected 0.8 percent increase in supply, thus resulting in a 1.3 percent gain in occupancy. 

The 62.1 percent occupancy level estimated for the year surpasses the long-run average of 61.9 percent as reported by Smith Travel Research (STR).

“Our firm’s forecast for nominal ADR growth in 2013 is 3.9 percent.  Given the fact that occupancy levels have finally eclipsed the long-run average, some hoteliers were expecting even greater rate growth,” said Woodworth. 

“Clearly this is the one measure that was impacted most by the economic uncertainty that characterized 2013.

“Industry participants need to temper their disappointment, though.  As we have noted in the past, hotels have been achieving highly desirable, real ADR growth during this low inflationary environment. 

“We also should note that evidence of greater future demand from meeting planners will lend tensile strength to revenue manager’s enhanced pricing power in 2014.”

 For a complete copy of the company’s news release, please contact:

R. Mark Woodworth                                               
PKF Hospitality Research, LLC.                          
Tel: 404 842 1150, ext 222                                    
 Email: mark.woodworth@pkfc.com                     

 Chris Daly
Daly Gray Public Relations
Tel: 703 435 6293
www.pkfc.com                                                         

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