While the market's booming now, it is likely to stabilize for rest of the year and next year.
The U.S. hotel industry is expected to see modest gains for year-end 2012 and in 2013, according to updated U.S. forecast released by STR.
2012: Industry is expected to record a 2.1-percent increase in occupancy to 61.2 percent, an average-daily-rate gain of 4.4 percent to $106.15 and a revenue-per-available-room increase of 6.5 percent to $65.01. Supply and demand are expected to end the year with increases of 0.5 percent and 2.6 percent, respectively.
2013: STR predicts occupancy to be virtually flat with a 0.3-percent increase to 61.4 percent, ADR to rise 4.6 percent to US$111.01 and RevPAR to grow 4.9 percent to $68.17. Supply and demand are forecast to end 2013 with increases of 0.9 percent and 1.2 percent, respectively.