STR, PKF Offer Differing Projections for Lodging Industry
Lodging-industry data providers STR and PKF Hospitality Research are offering very different forecasts for the coming years, based on numbers released last week at the Americas Lodging Investment Summit. According to a report on STR-owned HotelNewsNow.com, STR predicts that growth in revenue per available room will slow, from last year's 5.4 percent to 5.3 percent in 2014; a 4.7 percent year-over-year increase is expected for 2015. Meanwhile, PKF-HR foresees RevPAR growth continuing to build over the next two years, with a 6.6 percent increase called for this year and a 7.5 percent uptick in 2015. While Mark Woodworth, president of PKF-HR, pointed to rising hotel profits and rate increases, STR's senior vice president of strategic development, Jan Freitag, said increases in average daily rate will remain constant and that group demand was down slightly last year. "The demand for group rooms has basically stalled out," Freitag noted in the report.