U.S. hotel revenues will grow more slowly than previously expected, as a stubbornly high unemployment rate continues to put a damper on average room rates, according to a report by PKF Hospitality Research.
Meanwhile, Miami and New York will be among the North American regions where room rates will rise the fastest as the summer progresses, according to a separate report.
U.S. revenue per available room will increase 6.9% this year on a 4.3% rise in occupancy and a 2.4% increase in room rates, PKF said in its report, released Wednesday. The firm in March had forecast a 7.1% RevPAR increase for 2011.
Additionally, 2012 RevPAR will increase 8.7%, down from the 8.9% increase PKF forecast in March.
PKF cited unemployment as a mixed blessing for hoteliers, as a sluggish job market has kept labor costs down on the operational side but has also restricted room-rate growth. Rate increases will start accelerating after this year, it predicted room rates would increase 5.5% in 2012 and 5.8% in 2013.
Meanwhile, Miami and New York will be among the North American lodging markets that will have the largest room-rate growth between June and August, according to a report from Chicago-based travel-technology research firm RateGain.
Miami's median room rate for three-star hotels will rise 48%, to $182 a night in August from $123.28 in June, while four-star room rates will surge 85%, to about $270 in August from $145.77 in June. New York's three-star and four-star room rates will increase between June and August by 27% and 18%, respectively.
On the cooler end of the spectrum, Las Vegas room rates for both three-star and four-star hotels will increase less than 5% during the summer, while Toronto room rates will fall 4%, according to RateGain.
Among the regions surveyed by RateGain, New York's four-star hotels will have the highest median rate in August, at $409.26. Las Vegas's four-star median rate in August will be $152.21, the lowest among the six cities surveyed by RateGain.