According to the review by Smith Travel Research, RevPAR (total room revenue) declines are expected to continue according to the U.S. season.The 2009 occupancy forecast is at 8.4% to 55.4% and the ADR (average daily rate) was reduced by 9.7% to US$96.43. RevPAR projects for the end of the year are 17.1% to $53.41. Supply for 2009 is projected to grow by 3.0%, while demand is expected to finish 5.5%.
When looking at the third and fourth periods of the year, occupancy will slowly decrease and as well as the percentage change in demand, when compared to 2008. November is expected to be the month in which demand grows in measurement year after year.
Looking at 2010 shows an improvement over 2009, but the industry is expecting a decrease in occupancy, ADR and RevPAR to be shown by the end of 2010. Occupancy is forecast for the end of the year with 0.6% to reach 55.1%, ADR is forecast to decline by 3.4% to US$93.16 and RevPAR will fall 4.0% to US$51.26.
Supply and demand in 2010 are projected as positive. Supply is presumed to be above 1.8% and demand will increase by 1.3%.
