STR releases 2010 summer forecast

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Posted by Hotelier on May 14, 2010 // Leave Your Comment

The U.S. hotel industry should expect to see mixed results in
the three key performance metrics this summer, according to STR’s 2010
summer forecast.

The summer travel season comprises June, July and August. STR
predicts summer occupancy will increase 2.2 percent from summer 2009 to
63.1 percent, average daily rate will decrease 1.9 percent to US$95.16,
and revenue per available room will end the summer virtually flat with a
0.2-percent increase to US$60.03.

“While demand for hotels this summer will be brisk and will continue
to provide positive recovery momentum, rate growth remains a concern,”
said Brad Garner, VP at STR. “Conditioned and value conscious consumers
will not be reaching as deep into their wallets as in previous summer
seasons. We anticipate flat to slightly negative rate growth this
summer.”

During summer 2009 occupancy fell 9.1 percent to 61.7 percent, ADR
dropped 9.6 percent to US$97.04, and RevPAR was down 17.8 percent to
US$59.90.

Demand is expected to rise 4.4 percent (compared with a 6.2-percent
decrease during summer 2009), and supply is predicted to increase 2.1
percent (compared with a 3.2-percent increase during summer 2009).

Revenue for summer 2010 is forecasted to increase 2.3 percent to
US$26.9 billion, compared with the 15.2-percent decrease to US$26.3
billion reported for summer 2009.

July 2010 is projected to post the highest occupancy (64.4 percent)
and RevPAR (US$61.14) of the three summer months.

About STR | STR provides
clients—including hotel operators, developers, financiers, analysts and
suppliers to the hotel industry—access to hotel research with regular
and custom reports covering North America, Mexico and the Caribbean. STR
provides a single source of global hotel data covering daily and
monthly performance data, forecasts, annual profitability, pipeline and
census information. STR founded the STR family of companies and is
proudly associated with STR Global, STR Analytics, RRC Associates and
HotelNewsNow.com. For more information, please visit www.str.com.