Thursday June 13th, 2013 - 9:48AM
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%.