Some markets are indeed gaining faster than others, but this year's numbers are enough to get operators agressively investing again following the great big project freeze of 2008.
The hotel industry had a thriving year through November and is expected to end on a similar note in the coming weeks, says hotel industry analysis firm STR.
Data released on preliminary 2012 year-end results found that hotel supply, demand, ADR, and occupancy had all increased in 2012. The exact numbers are as follows:
- Increases in supply (0.5 percent) and demand (2.8 percent);
- a 2.3-percent increase in occupancy to 61.3 percent;
- a 4.3-percent rise in average daily rate to $106.17; and
- a 6.6-percent jump in revenue per available room to $65.08.
“The industry has experienced back-to-back years of record demand, which, coupled with limited supply growth, has fueled the increases in the other measurement categories,” says STR president, Amanda Hite.
Many hotel companies have taken their renewed revenues and used it to redesign or rebrand properties that were under-cared for during tough times in 2009 and 2010. Others like the Four Seasons have revamping their websites and to boost their online image and user engagement.
Expectation for 2013
This growth is expected to continue in 2013 with room rates growing 4.6 percent and the absolute level of occupancy by 0.3 percent.
“Room demand has grown fairly healthily and quickly since 2009 to the point where in 2012 we sold more room than ever before. We expect room demand to continue to grow…at a slower growth rate…which nonetheless should lead to another record breaking year in room demand,” says Jan Freitag, Senior VP at STR.