Marriott and Starwood are among the various U.S. hotel operators that may need up to four years to restore room rates to 2008 levels, Bloomberg reported. The average U.S. daily hotel rate dropped 9.8 percent in May from a year prior to $97.03, according to Smith Travel Research.
"We don’t see national average room rates getting back to 2008 levels until sometime in 2012 or even 2013," Mark Woodworth, president of PKF Hospitality Research, said in an interview. "There were rate declines in 2001 and 2002, but until this year that was the only other time that happened in this industry in some 20 plus years."
Additionally, hotels are seeing lower than average occupancy rates. Occupancies could drop to 55.5 percent compared with a record high of 64.8 percent in 1995.
"We don’t see national average room rates getting back to 2008 levels until sometime in 2012 or even 2013," Mark Woodworth, president of PKF Hospitality Research, said in an interview. "There were rate declines in 2001 and 2002, but until this year that was the only other time that happened in this industry in some 20 plus years."
Additionally, hotels are seeing lower than average occupancy rates. Occupancies could drop to 55.5 percent compared with a record high of 64.8 percent in 1995.
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