STR Predicts Summer Occupancy Increase for U.S. Hotel Industry

STR Predicts Summer Occupancy Increase for U.S. Hotel Industry

Smith Travel Research predicts a 1.7 percent occupancy increase for the U.S. hotel industry this summer. The U.S. hotel industry should expect to see a modest increase in demand for hotel rooms combined with meaningful rate gains this summer, according to STR’s 2011 summer forecast. The summer travel season comprises June, July and August.

STR predicts summer occupancy will increase 1.7 percent over summer 2010 to 66.7 percent, average daily rate (ADR) will increase 4.1 percent to $103.01, and revenue per available room (RevPAR) will jump up 5.9 percent at $68.68.

Year-over-year demand is expected to rise 2.5 percent (compared with an 8.6 percent year-over-year increase in summer 2010 and a 6.4 percent year-over-year decline in the summer of 2009). Supply is predicted to increase 0.8 percent (compared with a 1.8 percent year-over-year increase in summer 2010). Revenue for summer 2011 is forecasted to increase 6.7 percent to $30.9 billion, compared with the 10.1 percent increase to $28.9 billion reported for summer 2010.

Room nights sold this July are expected to match the milestone set last year (July 2010) when the hotel industry sold more than 100 million rooms in a single month.