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by Michael Shapiro | March 24, 2010

In its March edition of Hotel Horizons, PKF Hospitality Research forecasts a 10.5 percent growth in revenue per available room in 2012 -- the first double-digit RevPAR increase since the early 1980s. According to the company's projections, such growth would follow a RevPAR decline of 1.1 percent this year, followed by a 5.8 percent increase in 2011. The uptick in 2012, as PKF sees it, is driven by Moody's Economy.com 2012 forecasts for a 4.4 percent rise in income and a 3.2 percent growth in employment. Despite steadily increasing demand for hotel rooms, PKF says RevPAR will remain soft until 2012 due to rate discounting and predicts drops in the average daily rate of 1.4 percent and 3.4 percent for 2010 and 2011, respectively.