The U.S. lodging industry is expected to experience continued growth in all major metrics in 2018, according to CBRE Hotels’ Americas Research
, with year-over-year increases forecast in occupancy, average daily room rate (ADR) and rooms revenue (RevPAR).
However, the growth is not expected to be excessive: CBRE is forecasting a 0.1 percent occupancy increase along with a 2.3 percent rise in ADR and a projected 2.4 percent boost to RevPAR during 2018. CBRE is also forecasting a two percent increase in the number of available rooms, with 52 of the 60 major markets tracked by the company projected to achieve occupancies above their long-run average.
“As hotel owners and operators begin the process of preparing their 2018 marketing plans and budgets it is vital that they receive critical inputs on what will drive industry performance,” said R. Mark Woodworth, senior managing director of CBRE Hotels’ Americas Research (CBRE). “Based on our analysis of the economic and operating environments, we believe that U.S. hotels will once again achieve record occupancy levels and continued growth in profits, during the upcoming year. The limited growth rates may be disappointing or even troubling for some industry participants. However, 2018 will mark the ninth consecutive year of rising occupancy, something we have not seen since the 1990s.”