The outlook for the U.S. lodging industry, particularly historic hotels, continues to be extremely strong, according to a report released by CBRE Hotels’ Americas Research.
For the fourth consecutive year, CBRE Hotels’ Americas Research presented a Historic Hotels of America–CBRE five-year forecast at the Historic Hotels of America annual conference. CBRE relies on historical hotel performance data from STR and economic forecasts from CBRE Economic Advisors to prepare its lodging forecasts.
Mark Woodworth, senior managing director at CBRE, presented the results at the conference, finding:
- Per STR, through the first three quarters of 2018, the aggregate revenue per available room for historic hotels that are members of Historic Hotels of America placed between the national averages for all upper-upscale and all luxury hotels in the U.S. (luxury RevPAR $250.76, upper upscale RevPAR $140.48).
- Over the next two years (2019 and 2020), RevPAR for historic hotels is expected to grow at an average annual rate of 1.45 percent, which is more than the RevPAR forecast for the nation’s upper-upscale hotels at 0.5 percent, but less than luxury hotels at 3.95 percent. Most of the RevPAR growth is expected to stem from increases in average daily room rates.
- Annual occupancy levels for hotels that are members of Historic Hotels of America remains approximately 8.3 percent points above the national average occupancy level through 2020.
- Based on a set of information pulled from CBRE’s database of hotel operating statements, historic hotels (including those that are not members of Historic Hotels of America) had an average average daily rate of $277.87, more than 16.36 percent higher than the $238.78 ADR for contemporary hotels.
- Since 2009, historic resort hotels have achieved greater revenue and profit growth compared to their contemporary counterparts.
“The data strongly supports the idea that many consumers favor and will pay more for the unique hotel experience historic properties can offer,” Woodworth said in a statement.
“Historic hotels can achieve a significant advantage in ADR and RevPAR versus contemporary hotels, especially when recognized as part of Historic Hotels of America," Lawrence Horwitz, executive director, Historic Hotels of America and Historic Hotels Worldwide, said in a statement. "While promoting its history helps a historic hotel differentiate itself from other hotels, being part of Historic Hotels of America validates the differentiation. For the fifth year in a row, historic hotels inducted into and participating in Historic Hotels of America realize a competitive advantage as well as a substantial premium with their rates, occupancy and RevPAR compared to other hotels.”