Economic recovery creates positive impact on U.S. hotel sector
Hotel occupancy rates are expected to increase throughout the rest of the year due to the approaching summer travel season as consumer confidence strengthens, according to the Marcus & Millichap’s Second Quarter Hospitality report. Hotel occupancy rates in 2013 are projected to increase from 61.4 percent in 2012 to 62 percent in 2013. The national occupancy rate has increased to 59.2 percent in the first quarter 2013.
The steady improvements in the economy have encouraged travelers to go out of town for summer vacations, boosting occupancy rates in the summer months nearly up to pre-recession levels. Between June and August, occupancy rates in hotels are expected to increase by 70 basis points to 70.1 percent, which is consistent with the rates of 70.3 percent in 2007, before the global financial crisis. In this time period, the sector expects a 4.5 percent increase in average daily rates (ADR), wh