The U.S. lodging industry will recover this year, actually out-performing the pre-recession peak that was achieved in 2006.
The industry will reach an occupancy level of 63.6 percent in 2014, as compared to the peak of 63.1 percent in 2006, per the June 2014 edition of PKF Hospitality Research, LLC's (PKF-HR) Hotel Horizons® forecast report. As a result, average daily rates (ADR) and net operating income (NOI) should recover.
This means that the term 'recovery' should no longer be used, as the national hotel industry is operating at peak performance. In fact, by the end of 2015, the U.S. lodging industry will have experienced:
- "A fourth year of accommodated demand in excess of the pre-recession peak of 11.3 million room nights.
- Six consecutive years of increasing occupancy, the longest such streak since 1988.
- An occupancy level of 64.6 percent, the highest level of occupancy since 1995.
- 15 of the 55 markets in the Hotel Horizons® universe will achieve their highest occupancy levels in the past 25 years.
- Five consecutive years of real ADR growth, leading to a full recovery...from pre-recession levels.
- Six consecutive years of real revenue per available room (RevPAR) gains.
- Six consecutive years of real NOI gains, leading to a real recovery from pre- recession levels."
Statistics per PKF-HR.