U.S. Hotel Market Posts a Strong 2012 Finish
by Michael J. ShapiroJanuary 28, 2013
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Revenue per available room grew by 6.5 percent year-over-year in the fourth quarter, according to data released Friday by STR. That was driven primarily by a 4.0 percent jump in average daily rate, while occupancy was up by 2.4 percent over the same quarter a year ago. "The industry finished 2012 on a good note in the fourth quarter," said STR senior VP of operations Bobby Bowers. "We expect this pattern will continue in 2013, as demand growth slows somewhat and ADR traction holds." According to the company's forecast, revised earlier in the week, occupancy should hold fairly steady in the coming year, increasing by about 0.8 percent, while ADR shoots up by 4.9 percent and RevPAR grows by 5.7 percent. The projected ADR of $111.27 would surpass 2008's peak of $107.41 and the forecasted RevPAR of $68.86 would exceed 2007's peak of $65.56. Looking ahead to 2014, STR forecasts another 1.3 percent rise in occupancy, a 4.6 percent hike in ADR and 6.0 percent RevPAR growth.