PKF: Hotel Fundamentals Remain Strong


In the recently released September 2013 edition of Hotel Horizons®, PKF Hospitality Research, LLC (PKF-HR) affirms its forecast of strong fundamental performance for the U.S. lodging industry. The lack of meaningful increases in hotel supply, an economy that supports growth in lodging demand and market leverage that allows for real room rate growth leads to PKF-HR forecasts of healthy increases in both revenues and profits in 2013 and 2014.

It is very rare for PKF-HR to say we have no concerns about the near-term outlook for the U.S. lodging industry, but that is what we see from our econometric models, as well as discussions with our clients. If you look at the factors that historically have derailed the good times for hotel profit growth, very few, if any, exist today.

According to the September 2013 Hotel Horizons® report, PKF-HR is forecasting U.S. hotels to enjoy a 5.9 percent increase in revenue per available room (RevPAR) in 2013, followed by RevPAR gains of 7.2 percent in 2014 and 8.1 percent in 2015. All of these projections are well above the long-run average annual RevPAR increase of 2.9 percent as reported by Smith Travel Research (STR).


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