U.S. hotels predicted to set record for summer room revenue
Revenue per available room (RevPAR) is expected to rise 5.7% at U.S. hotels this summer on the strength of rate increases, Smith Travel Research (STR) forecasted.
RevPAR for June, July and August will rise to $73.59, according to STR. That figure would be a record for the summer months, surpassing $73.26 in the summer of 2007.
A 5.7% growth would actually be a slight slowdown from the first quarter,when U.S. RevPAR rose 7.9% from a year earlier on big demand increases in several markets, particularly Nashville, New Orleans and Oahu.
Still, the RevPAR growth spells good news because most of the increase is from room rates, not occupancy. Average daily rate for the summer will rise 3.9% from a year earlier, while occupancy will be up 1.8 percentage points, forecasted STR. Follow Danny King on Twitter @dktravelweekly.
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