A new report is showing that RevPAR for hotels may be worse this year than experts thought. Revenue per available room may decline 13.7 percent in 2009, according to the Hotel Horizons report released by PKF Hospitality Research. This forecast is up from its earlier prediction of a decline of 9.8 percent.
Though the overall outlook for the lodging industry in the United States is negative, the forecast can vary greatly among markets. For example, Minneapolis and Orange County, California, may see RevPAR gains as early as the end of this year. An additional 12 cities may see increases in 2010: Albuquerque; Atlanta; Austin, Texas; Chicago; Columbus, Ohio; Dallas; Detroit; Oahu, Hawaii; Fort Worth, Texas; Houston; Raleigh; and Nashville. Occupancy levels will still be low in most cities, though.
PKF also reported that all 50 U.S. markets will see recovery by 2011 and will see rate, occupancy and RevPAR growth through 2013. However, most cities will not recover to 2008 levels.