Room for growth

The Oklahoman (Sunday) - - EXTRA -

U.S. ho­tels had a record year in 2017. Av­er­age oc­cu­pancy rates reached a high of 66 per­cent and rev­enue per avail­able room — a key met­ric for the in­dus­try — was a record $83.55.

Post-hur­ri­cane de­mand in Florida and Texas spurred de­mand, as the gov­ern­ment paid for ho­tel rooms to house vic­tims.

But even with hur­ri­cane-re­lated de­mand sub­sid­ing, this year is start­ing strong. Fe­bru­ary was the 96th con­sec­u­tive month of year-over-year in­creases in rev­enue per avail­able room. That’s ap­proach­ing the record 112-month stretch af­ter the 1992 re­ces­sion.

Ho­tel con­struc­tion is ta­per­ing off this year, which should help ex­ist­ing ho­tels fill their rooms, says STR, an in­dus­try con­sult­ing firm. Tax cuts and a healthy econ­omy should also in­crease de­mand. Rev­enue per room is still ex­pected to grow this year, although at a slower pace than the last few years.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.