Hotels will likely see a 7.8 drop in RevPAR (revenue per available room) in 2009, according to a report released by PKF Hospitality Research. This will be the fifth largest annual decline since 1930.
The drop, along with the expected 2.5 percent decrease in demand in 2009, are the result of downturns in employment and income and the struggling economy. This demand drop coupled with a 2.9 increase in supply is causing a 2009 year-end occupancy of 57.6 percent, a 5.3 percent decline.
Where can planners expect to see these declines? All 50 of the markets included except New Orleans will likely see a decline in RevPAR in the coming year. Sunny, seasonal markets (Phoenix, Oahu, Fort Lauderdale, Orlando, and Miami top the list) are likely to be hit hardest.
Not exactly a bright outlook for hotels, but there are some positive outcomes for meeting and event planners: lower hotel rates. The decline in demand will pressure hotels to drop prices, the report says, forecasting a 2.7 percent drop in 2009.
The drop, along with the expected 2.5 percent decrease in demand in 2009, are the result of downturns in employment and income and the struggling economy. This demand drop coupled with a 2.9 increase in supply is causing a 2009 year-end occupancy of 57.6 percent, a 5.3 percent decline.
Where can planners expect to see these declines? All 50 of the markets included except New Orleans will likely see a decline in RevPAR in the coming year. Sunny, seasonal markets (Phoenix, Oahu, Fort Lauderdale, Orlando, and Miami top the list) are likely to be hit hardest.
Not exactly a bright outlook for hotels, but there are some positive outcomes for meeting and event planners: lower hotel rates. The decline in demand will pressure hotels to drop prices, the report says, forecasting a 2.7 percent drop in 2009.
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