CBRE Hotels Research forecasts that revenue growth will continue to diminish, but the U.S. lodging industry will remain strong through the next two years. As outlined in the December 2019 edition of Hotel Horizons, U.S. occupancy levels are forecast to dip slightly, but remain above 65.5 percent through 2021, 300 basis points greater than the STR long-run average. Concurrently, revenue per available room (RevPAR) is forecast to increase at less than 1 percent per year during the same timeframe.
“Throughout the recovery from the Great Recession, we have seen the U.S. lodging industry deviate from economic norms,” said R. Mark Woodworth, senior managing director at CBRE Hotels Research. “Despite an economy that has supported strong growth in lodging demand and record occupancy levels, hoteliers have been unable to achieve gains in average daily rate [ADR] commensurate with what we have seen during equally strong market conditions. We believe an environment of hi
