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| R. Mark Woodworth |
Atlanta, GA, May 30, 2018
– Based on better than expected first quarter performance, CBRE Hotels’
Americas Research (CBRE) has enhanced its outlook for 2018.
According to STR, U.S. hotels enjoyed a 3.5 percent increase
in revenue per available room (RevPAR) during the first quarter of 2018,
exceeding the 2.5 percent RevPAR gain expected by CBRE for the period.
Accordingly, CBRE now is forecasting a 2.8 percent annual
increase in RevPAR for U.S. hotels in 2018, a 0.3 percentage point enhancement
over the 2.5 percent mark published in CBRE’s March 2018 Hotel
Horizons® report.
“We continue to be impressed by the ability of the U.S.
economy to support demand growth for accommodations away from home,” said R.
Mark Woodworth, senior managing director of CBRE Hotels’ Americas
Research.
 |
| John B. (Jack) Corgel |
“Helped by an
expanding economy, first quarter 2018 lodging demand grew at 3.0 percent, a
full 1.1 percentage points greater than anticipated. This sustains 33
consecutive quarters of demand growth, a streak that started in the first
quarter of 2010.”
Given the strong first quarter performance, CBRE’s 2018
annual forecast for growth in lodging demand has increased from 1.8 percent in
its March forecast report to 2.1 percent in the June edition.
With the nation’s lodging supply forecast to grow by 2.0
percent, this now flips the occupancy projection from a 0.1 percent decline to
an increase of 0.1 percent.
“Looking toward 2019, we foresee another year of occupancy
growth. This will mark 10 consecutive years of increases in occupancy and
five consecutive years of record occupancy levels,” Woodworth noted.
“With sustained record occupancy levels, we also are
starting to see the return of some pricing power for U.S. hoteliers,”
said John B. (Jack) Corgel, Ph.D., professor of real estate at the
Cornell University School of Hotel Administration and senior advisor to CBRE
Hotels’ Americas Research.
“Ever since the U.S.
lodging industry achieved a new all-time high occupancy level in 2015, we have
observed a slowdown in the pace of annual changes in average daily room rates
(ADR).
" This is counterintuitive to basic economic
principles. However, based on the strong performance observed during the
first quarter of 2018, we are forecasting a 2.7 percent annual increase in ADR
for 2018.
"This is greater than the 2.1 percent annual change in ADR
during 2017.”
For more information,
please contact:
CHRIS DALY
PRESIDENT
DALY GRAY PUBLIC RELATIONS, INC.
620 Herndon Parkway, Suite 115 | Herndon, VA 20170
Main: 703-435-6293
Mobile: 703-864-5553
