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US Hotel Industry Looks Forward to Continued Growth Through 2016

At the annual meeting of the NYU International Hospitality Industry Investment Conference, research companies STR, Inc., and Tourism Economics presented their latest findings on the outlook for growth in the hospitality industry in 2015 and 2016. Their forecast contains a number of interesting data points, including a 5.2 percent uptick in average room costs to $120.93 per day, as well as an overall trend toward higher growth in demand over supply. Altogether, the hospitality industry in the United States seems poised to continue its record-breaking expansion over the course of the coming year.
The STR/Tourism Economics forecast saw a particularly strong surge in the “Upper Midscale” chain market, while the average daily rate of growth will be highest in the “Luxury” category. Revenue per available room (RevPAR) will be especially robust in several markets, with projections for cities like Denver, Tampa/St. Petersburg, and Phoenix showing 10 to 15 percent growth. Absent any major changes, 2016 promises to be another banner year, as a 2.2 percent increase in demand will once again outpace a 1.4 percent rise in supply. In addition, it is expected that demand will exceed supply for the fifth consecutive year. The top 25 markets are also expected to enjoy increases in RevPAR of 5 to 10 percent.
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