Topic: Average Daily Rate
While other segments saw flat or declining occupancy, luxury and economy hotels reported growth of more than 5 percent.
Both revenue per available room and occupancy dropped year over year, while average daily rate saw a modest increase.
While occupancy for U.S. hotels still is close to historical highs, the metric is expected to remain flat through the end of the year.
Q3 2019 marked the first quarter during the current cycle to experience RevPAR growth below 1 percent.
A new report from the firm cuts its outlook from positive to stable as RevPAR growth continues to slow—a trend that is likely to continue.
A recent analysis from CBRE Hotels Research noted that the U.S. economy and hotel performance are set to slow, but a recession isn’t in the cards quite yet.
For reservations currently on the books, group ADR is up while transient ADR is down, according to TravelClick data.
Although current fundamentals appear solid, concerns about the future of the U.S. economy might make hoteliers nervous.
The groups have dropped their forecast for revenue per available room growth from 2 to 1.6 percent in 2019 and from 1.9 to 1.1 percent in 2020.
CBRE Hotels Research analyzes the relationship between supply growth and occupancy in the United States’ top markets.