US revPAR to hold firm in troubled times – STR
Hotel benchmarking giant, Smith Travel Research (STR), has predicted that the US hotel industry can expect revenue per available room (revPAR) to hold steady in the long term amid the on-going global financial crisis. Releasing its 2009 forecasts, and its projections for the US hotel industry’s performance in 2010, STR’s Chief Executive Officer, Randy Smith, said that a significant drop in occupancy levels would be compensated by a slight rise in average daily rates (ADR).
“We look for things to get tougher before they get better,” Smith said. “We’ve had an entire year in which we’ve had a cheap dollar fuelling more international visitors, and New York to date has had another good year. We expect those two things to level, so two of the things that have been good for the US lodging industry aren’t going to be there in the foreseeable future.”
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