PKF Hospitality Research says there will be a modest slowdown in the US lodging market in 2008, although RevPAR will continue to grow.
PKF say occupancy levels will decline by 0.7 percent and RevPAR will grow by 5.3 percent, resulting in a 4.5 percent RevPAR gain.
Although 2008 is expected to be an improvement on 2007, it will be the slowest RevPAR growth rate since the industry recession of 2001-2003, PKF says.
PKF president Mark Woodworth says a slight slowdown is not unexpected, given the cyclical nature of the hospitality industry.
“Hotel construction activity is picking up and will cause a modest imbalance between supply and demand,” he says.
“We are concerned that the residential credit-crunch might have a negative impact on leisure travel patterns in the summer of 2008.
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“Fortunately, corporate profits continue to support commercial lodging demand and should mitigate any fall-off in leisure demand.”
By staff writer