HVS Industry Statistics Update – Q2 2019

The Quarterly HVS Industry Statistics Update shows key economic metrics that relate to the hotel industry’s recent performance and near-term forecast.
Jerod S. Byrd The Quarterly HVS Industry Statistics Update shows key economic metrics that relate to the hotel industry’s recent performance and near-term forecast. The U.S. hotel market achieved 1.5% RevPAR growth for the first quarter of 2019, with economy hotels averaging the highest peak occupancy growth among the six asset classes, while upper-upscale hotels achieved the highest average daily rate (ADR). National RevPAR growth would have only registered 1.1% if San Francisco were to have been excluded from the mix; San Francisco achieved RevPAR growth of 15.9% during the first quarter of 2019, primarily attributed to strong ADR levels. HVS and STR are generally on the same page when it comes to the year-end 2019 RevPAR forecast, expecting growth to register between 2.0% and 2.3% this year. STR recently published its 2020 outlook, which notes continued stability in occupancy and a 2.2% rise in ADR. Moreover, total room supply slated to enter the market in 2019 is forecast to be 4.5% higher than in 2018. According to the Lodging Industry Investment Council (LIIC), participants are nervous about five of the top 25 markets in the U.S., from a buying perspective; however, New Orleans continues to represent opportunities for buyers. Additionally, a majority of the LIIC participants in the survey anticipate a continued increase in hotel valuations for 2019 and do not expect the onset of another recession until 2021. However, according to a survey published by the Wall Street Journal, market participants indicated that another recession could occur as soon as 2020.
 
 
Source: STR
 
Source: Wall Street Journal
 
Source: HVS
 
Source: HVS, STR/Tourism Economics
 
Source: Lodging Industry Investment Council (LIIC)
Jerod Byrd, one of HVS’ premier experts on hotel markets in the northeast, New England, and Mid-Atlantic regions, is Managing Director and Senior Partner for HVS Philadelphia. Jerod has been involved in thousands of hotel consulting and appraisal assignments at HVS, including market studies, feasibility studies, and valuations of existing and proposed hotels and portfolios throughout the Mid-Atlantic region and has been featured at various industry events. Jerod earned dual BBA degrees in Hospitality & Resort Management and Real Estate from The University of Memphis and is a state-certified appraiser and Member of the Appraisal Institute. Contact Jerod at (901) 481-3058, or [email protected].

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