Hotel Business to Grow Moderately Next Year

 Hotel demand and average daily rate will growing modestly over the next 12 months, according to TravelClick's November 2011 North American Hospitality Review. That data is based on actual hotel bookings for this quarter through the third quarter of 2012, and it applies across all segments -- business, leisure and group travel. Committed occupancy is up 3.3 percent year-over-year, average daily rate has risen by 4 percent and revenue per available room is tracking at a 5.9 percent growth rate. "While business travel remains strong," noted TravelClick executive vice president of business intelligence Tim Hart, "overall demand has slowed and the industry is not experiencing the robust ADR growth that many had hoped for. Sustained growth may not be a guarantee." Markets showing particularly strong increased demand include Charlotte, N.C., where occupancy is up by 26 percent; Detroit, where committed occupancy is up nearly 15 percent (14.8); and Indianapolis, which is currently showing an 11.3 percent occupancy increase. Of those markets, however, only Detroit is showing rate growth of more than 3 percent, with an ADR hike of 4.1 percent.