Smith Travel Research: 2010 Lodigng Outlook Is Looking Up
STR said it expects 2010 occupancy to increase 1.9 percent, to 55.8%. Previously, it predicted occupancy would be flat.
Average daily rate is now expected to decline 2.3%, to $94.45, compared with the 3.2% decline previously predicted, and revenue per available room will decrease 0.5% rather than 3.2%.
"The takeaway is that 2010 is going to be significantly better than [hoteliers] thought it would be, and they plan their strategies accordingly," said STR President Mark Lomanno. "It won’t be back to 2007 or 2008 levels, and there will be easy [comparisons to last year]. 2011 will be a good year on top of a good year, and that is something we haven’t seen in awhile."
"We think the recovery will pick up its pace during the second and third quarters of this year, then it will moderate," said Lomanno.Still, STR predicts the industry will see increases in all three key performance metrics in 2011. It predicted that occupancy will increase 1.9%, to 56.8%; average daily rate will rise 3.5%, to $98.79; and RevPAR will be up 5.4%, to $56.12.