Hospitality Design
This Site Web | Advanced Search
Hospitality Design Home Hotel Industry News Green Hotel Design Hotel Furniture and Products buyers' guide Hotel Design Projects Hotel Interior Design Events Photo Gallery buyers' guide
Industry News

US Hotels to Resume Strong Growth

Dec 20, 2013

The US lodging industry is expected to grow in revenue and profit in 2014 and 2015, according to PKF Hospitality Research, LLC (PKF-HR).  

According to the recently released edition of Hotel Horizons, national revenue per available room (RevPAR) is projected to increase by 6.6 percent in 2014, followed by another 7.5 percent boost in 2015.  Concurrently, hotel profits should see 12.8 percent and 14.5 percent growth respectively over the next two years.

“As anticipated, RevPAR growth slowed down a bit in 2013 compared to the previous three years,” says R. Mark Woodworth, president of PKF-HR. “Entering the year, we knew fears of falling off the fiscal cliff would create uncertainty in the minds of potential travelers. However, despite the challenging economic environment, we observed above average growth in lodging demand, average daily rates (ADR), RevPAR, and profits.”

PKF-HR estimates that by year-end 2013, lodging demand will grow by 2.1 percent.  This is greater than the projected 0.8 percent increase in supply, resulting in a 1.3 percent gain in occupancy.  The 62.1 percent occupancy level estimated for the year surpasses the long-run average of 61.9 percent.

PKF-HR’s lodging forecasts are driven by economic projections provided by Moody’s Analytics.  According to Moody’s, 2014 is showing all the signs of a significant growth year.

“As lodging forecasters, it is our role to interpret the economic variables provided by Moody’s and produce projections of hotel performance,” says John B. Corgel, the Robert C. Baker professor of real estate at the Cornell University School of Hotel Administration and senior advisor to PKF-HR. “Moody’s has identified certain economic factors that we believe will have a very positive impact on the growth of lodging demand and room rates over the next few years.”

Hotels located in airport, resort, and suburban areas are forecasted to achieve the greatest gains in RevPAR in 2014.  Lagging in RevPAR growth will be properties operating along the nation’s interstate highways and in small towns.

hdtalks: the interviews

During HD Expo 2014, Hospitality Design’s Michael Adams sat down with HBA’s Michael Bedner to talk about his half-century in the hospitality design industry. View the video.



Produced by: Emerald Expositions
Nielsen      Contract Design | Hospitality Design | K+BB | DDI

Hospitality Design is the leading interior design industry publication and established web resource in the business. Providing comprehensive reporting on hotel industry
news and exclusive coverage of the latest ecological-friendly green hotels and bar designs, HD Magazine keeps you updated on the latest hotel trends in technology
and innovative interior design ideas. From recent hotel renovations and openings to award-winning luxury hotels and hotel construction projects, HD Magazine
keeps you informed on news that matters most to your hospitality business.

Hospitality Design Magazine | Hotel Industry News | Green Hotel Design  | Hotel Furniture and Products | Hotel and Bar Design Projects | Hospitality Design Events 
 | Hospitality Design Newsletter | About Hospitality Design | Hospitality Design Magazine Advertising | Hotel Design Opportunities 
| Contact Us | Site Map | RSS 
hdexpo2 hdboutique2 summit