Wednesday December 10th, 2008 - 9:51AM
ATLANTA—According to the latest report from PKF Hospitality Research, U.S. hotels have entered the initial stages of one of the deepest and longest recessions in the history of the U.S. lodging industry.
PKF-HR is now forecasting a 7.8% drop in RevPAR for 2009, which would be the fifth largest annual decline in this measure since 1930. In addition, PKF-HR reports that hotels will not again experience a year-over-year quarterly increase in RevPAR until the second quarter of 2010. Consequently, according to Smith Travel Research data, the projected seven consecutive quarters of declining RevPAR that began with the recent third quarter decline will mark the longest stretch of falling hotel revenues endured the by U.S. lodging industry since STR began tracking the data in the late 1980s.