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
Chris Daly
Daly Gray Public
Relations
Tel: 703 435 6293
Email: chris@dalygray.com
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