STR Updates Forecasts for 2010, 2011

On Monday, Smith Travel Research released updated forecasts for the next two years. Consistent with STR’s late-November, 2009, forecast, the U.S. hotel industry will continue to struggle in 2010 but will enjoy a turnaround in 2011. Projections for 2010 are just slightly better than called for in November, with a 3.2 percent decrease in average daily rate, to $94.39, and a 3.2 percent drop in revenue per available room, to $51.99. STR is forecasting occupancy to remain flat, at 55.1 percent. For 2011, the researchers foresee increases in all three performance metrics: a 2.2 percent increase in occupancy, a 2.0 percent rise in ADR and a 4.2 percent hike in RevPAR.