2021 U.S. Hotel Forecast Improves
STR and Tourism Economics recently upgraded their U.S. hotel forecast for 2021 amid a surge in demand and soaring room rates. However, the companies lessened growth projections for 2022, as business travel remains down and is unlikely to propel the industry as summer leisure demand drops off. Currently, 2021 U.S. hotel occupancy is projected at 54.7% (+1.4% from previous forecast). Meanwhile, 2021 average daily rate (ADR) is forecasted at $115.50, which is up from $109.47. Lastly, revenue per available room or RevPAR is projected at $63.16, up from $58.39.
Aran Ryan, Tourism Economics director said that “though it is challenging to look through the current virus wave, we expect as public health conditions stabilize, the recovery in leisure travel demand will remain intact and the corporate travel recovery will resume its climb later this year.” STR and Tourism Economics continue to anticipate a full recovery of demand by 2023 and expect RevPAR to surpass 2019 pre-pandemic levels at some point in 2024. Read more.
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