PKF Predicts Increases in Revenues, Profits for 2014
Thursday June 13th, 2013 - 9:48AM X
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ATLANTA—PKF Hospitality Research, LLC, is projecting that U.S. hotels will have a 7.7% increase in RevPAR in 2014, as well as a 15.4% boost in NOI.
PKF-HR predicts a 3.3% growth in lodging demand in 2014, along with an increase in supply of 1.0%. The net result is a national occupancy level of 63.8%, the highest annual occupancy rate since 1997.
From 2014 through 2016, PKF-HR is forecasting annual ADR growth rates from 5.4%-6.4%.
Supply growth is estimated to be 1.0% or less in 27 markets; 33 markets are predicted to achieve occupancy levels at or above their pre-recession peak levels; and two markets are projected to suffer a decline in demand, while five markets are forecast to experience a decline in occupancy.
In addition, 39 markets are predicted to achieve ADR levels at or above their nominal pre-recession peak; 17 markets are projected to see ADR grow by 6.0% or more; and 20 markets are forecast to see RevPAR growth greater than 7.0%.
Tags: • Hospitality • Quarterly Results •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.