The US hotel industry is expected to see a healthy demand for rooms this year. This is especially true for the largest US cities, which are expected to see rises in supply. However, as the demand continues to rise, so does the price of hotel rooms, which is expected to further increase in the coming years. This trend is due to a number of factors, including the rising number of US travelers, which has shown a steady increase in the last few years.
“The US hotel industry should see a slight improvement in occupancy and revenue growth for the year 2021”, according to “scGuide”s latest forecast. The prediction comes as the industry is pacing to surpass the $200 billion mark in annual revenue. Meanwhile, global demand for hotel rooms is expected to continue rising in the years to come, especially in China, where the market is projected to triple over the next 10 years.
The United States hotel industry is seeing growth in demand, and that’s good news for travelers looking for a room. According to the National Travel and Tourism Office, 581 million overnight visitors will stay in hotel rooms in 2019. That’s up 5 percent from the previous year.. Read more about hotel companies and let us know what you think.
Following a spike in demand and rising room prices, STR and Tourism Economics have updated their U.S. hotel prediction for 2021.
However, the businesses lowered their growth forecasts for 2022 as business travel remains low and is unlikely to drive the sector forward as summer leisure demand declines. The current estimate for 2021 hotel occupancy in the United States is 54.7 percent, up 1.4 percentage points from the previous forecast published in May. Meanwhile, the average daily rate (ADR) for 2021 is expected to be $115.50, up from $109.47 this year. Finally, RevPAR (revenue per available room) is expected to increase to $63.16 from $58.39.
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STR and Tourism Economics continue to forecast a complete recovery of demand by 2023, with RevPAR exceeding pre-pandemic levels in 2024.
“Our upward revision for 2021 more reflects the surge in demand that has already occurred as well as room rates hitting an all-time high on a nominal basis,” STR president Amanda Hite said in a statement accompanying the latest projections, which were released at the 13th Annual Hotel Data Conference last week.
“As we have said, there is worry once the summer formally ends and the sector loses its major source of demand. In normal years, business travel and big corporate events would replace summer leisure demand, but with increased worry about the Delta variation and delays in firms returning their workers to offices, businesses may wait until early 2022 to send their personnel back on the road. We lowered our estimates in contrast to a stronger-than-expected 2021, even though we anticipate part of that demand to transfer into 2022. Overall, we keep our complete recovery forecasts the same, with 2023-2024 as the ‘finish line.’ “Hite went on to say.
“Meanwhile, recovery is uneven, with certain leisure-driven economies ahead of where they were pre-pandemic and the majority of big sectors still behind. Even while there is hope for the years ahead, add in staffing problems in many areas, and the situation remains tough for most of the nation.”
“Though it is difficult to see through the present virus wave,” Tourism Economics Director Aran Ryan said, “we anticipate that once public health conditions improve, the rebound in leisure travel demand will stay intact, and the corporate travel recovery will continue its rise later this year.”
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