RevPAR Growth Likely to Slow, Say STR and Tourism Economics
Increases in U.S. lodging revenue per available room will continue to be strong over the next two years, say STR and Tourism Economics, although the rate will be slower than it has been in recent years. The latest forecast, based on an analysis of long-term lodging trends as they relate to the economic cycle, predicts RevPAR will grow by 5.3 percent in 2014 and 4.7 percent in 2015. "Our forecasts for 2013 were more conservative than many analysts expected," said STR senior VP of strategic development Jan Freitag. "But we remained convinced that a shift to a more moderate, post-recovery performance was under way." STR and Tourism Economics predicted 5.8 percent RevPAR growth in 2013; based on recently released year-end figures, STR calculated the actual growth at 5.5 percent. Beyond 2015, the companies expect the rate of growth to continue to slow.