One on One with Richard Mar­nell, SVP mar­ket­ing, Vik­ing River Cruises. Ho­tel busi­ness to stay strong through 2016. Starwood in­tro­duces Sher­a­ton Grand.

Business Traveler (USA) - - INSIDE -

The US ho­tel in­dus­try is pro­jected to ex­pe­ri­ence con­tin­ued year-over-year per­for­mance in­creases through 2016. Ac­cord­ing to STR and Tourism Eco­nom­ics’ most re­cent forecast, the in­dus­try is pre­dicted to re­port a 1.7 per­cent in­crease in oc­cu­pancy for the re­main­der of 2015.

Dur­ing that pe­riod oc­cu­pancy is ex­pect to in­crease to 65.5 per­cent. De­mand is forecast to grow 2.9 per­cent, while sup­ply will grow by only 1.2 per­cent.

Among the Top 25 US Mar­kets, 21 are ex­pected to see rev­enue per avail­able room (RevPAR) in­creases of 5.0 per­cent or higher dur­ing 2015. Three of those mar­kets are ex­pected to see RevPAR growth in the range of 10.0 per­cent to 15.0 per­cent: Den­ver, Phoenix and Tampa/St. Peters­burg.

For 2016, STR projects the US ho­tel in­dus­try to post a 0.8 per­cent in­crease in oc­cu­pancy to 66.0 per­cent, a 5.2 per­cent rise in av­er­age daily rate and a 6.0 per­cent in­crease in RevPAR. Next year, de­mand growth of 2.2 per­cent is once again ex­pected to out­pace sup­ply growth at 1.4 per­cent. De­mand growth in the US has ex­ceeded sup­ply growth in each year dat­ing back to 2010.

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