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