STR Predicts Mixed Summer Results for U.S. Hotel Industry

The U.S. hotel industry should expect to see mixed results in the three key performance metrics this summer, according to STR’s 2010 summer forecast. The summer travel season comprises June, July and August.

STR predicts summer occupancy will increase 2.2 percent from summer 2009 to 63.1 percent, average daily rate will decrease 1.9 percent to $95.16, and revenue per available room will end the summer virtually flat with a 0.2 percent increase to $60.03.

During summer 2009, occupancy fell 9.1 percent to 61.7 percent, ADR dropped 9.6 percent to $97.04, and RevPAR was down 17.8 percent to $59.90. Demand is expected to rise 4.4 percent (compared with a 6.2 percent decrease during summer 2009), and supply is predicted to increase 2.1 percent (compared with a 3.2 percent increase during summer 2009).

Revenue for summer 2010 is forecasted to increase 2.3 percent to $26.9 billion, compared with the 15.2 percent decrease to $26.3 billion reported for summer 2009. July 2010 is projected to post the highest occupancy (64.4 percent) and RevPAR ($61.14) of the three summer months.