US hotel growth forecast cut: PKF
Revenue per available room (RevPAR) at US hotels are forecast to drop from 4.5% to a below-average 3% this year, according to PKF Hospitality Research.
It based its projection based on revised projections by Moody’s Economy.com which now is calling for a U.S. recession this year due to deteriorating economic fundamentals.
“While this is certainly not good news for lodging industry participants, PKF-HR still believes that the typical U.S. hotel will enjoy increases in both revenues and profits, but at a more modest pace,” the study said.
PKF said employment and personal income indicators will grow minimally during the first part of the year but will start to climb back during the latter months of the year.
“Accordingly, we are forecasting the demand for lodging accommodations to inch up 0.9 percent in 2008. This pace of demand growth is approximately half of the long-term annual average, but still represents a net gain in accommodated room nights for the year,” said Mark Woodworth, president of PKF Hospitality Research.
“We believe that U.S. hotel owners and operators will struggle to grow their revenues and profits, but market conditions will not be as damaging as we saw back in 1991 or 2001.”
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