PKF: Q2 2010 Will Be End Of Hotel Demand Decline
Tuesday August 25th, 2009 - 10:17AM
These are shortcuts to your favorite social networking and bookmark sites. Add this story to your Facebook page, del.icio.us, DiggIt, and many others!
ATLANTA—PKF Hospitality Research is now forecasting that the U.S. hotel industry’s nine consecutive quarters of declining demand will come to an end in the second quarter of 2010. However, the only problem is price discounting has firmly taken hold and, as result, room rates are expected to decline again in 2010.
PKF is currently forecasting a RevPAR decline of 18.5% for this year, which would be the result of a 9% decline in occupancy and a 10.4% decrease in ADR. The 18.5% RevPAR decline would be the largest annual decrease recorded by PKF since 1932.
The most recent NYU Conference, earlier this month proved, once and for all, that the lodging industry has finally turned the corner and happy days are, indeed, here again. While the economists and pundits all provided plenty of anecdotal evidence to bear that out in terms of supply and demand ratios, RevPAR projections, asset values and all the other metrics, that’s not what has me convinced.