Dec
05

Lodging Fundamentals Look Strong Through 2017

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In a case of rising tide actually lifting all boats, a rallying US economy is giving a lift to RevPAR for all classes of product in the hotel sector, says PKF Hospitality Research. Increasingly, that’s the case across a broader geographic swath of the country, thus helping propel RevPAR growth ahead of long-term averages across all chain-scales through 2017.

“No matter what hotel performance indicator you look at for any type of hotel, we foresee extremely favorable movements the next few years,” says R. Mark Woodworth, president of Atlanta-based PKF-HR, a CBRE company. “Our firm is projecting demand growth to outpace changes in supply in the U.S. through 2016. That will result in industry wide occupancy levels at, or above, all-time record levels through 2017.”

Further, PKF-HR’s Hotel Horizons report for December forecasts ADR to increase by an annual average of 5.4% through ‘17. That will drive an average 11.8% annual rise in unit-level NOI during the same period, including a 13.2% year-over-year increase projected by 2015.

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