Average daily room rates are expected to increase significantly for hotels across Oahu next year, according to a report released Dec. 13 by San Francisco-based PKF Consulting, an advisory firm specializing in the hospitality industry.
PKF projected average daily rates will jump 10.4% for Oahu hotels in 2013.
The consulting firm also forecast that demand would stay relatively flat, dipping .9%.
PKF President Mark Woodworth also said in the report that despite projected gains in coming years for just about all the nationwide hotel industry measurements, “there is a pall on lodging industry participants induced by the federal budget negotiations.”
“Hoteliers are eager to begin enjoying what appears to be a four-year period of sustained high levels of prosperity,” he continued. “Unfortunately, there is so much uncertainty surrounding 2013 that almost no one overtly is showing the optimism that should exist.”
According to Woodworth, revenue per available room (RevPAR) will increase 6% nationwide in 2013 if Washington politicians can avoid a fall off the fiscal cliff.
“However, if budget negotiations fail, it can be assumed that RevPAR growth will be well below that,” he said.