WASHINGTON—The outlook for the U.S. lodging industry, particularly historic hotels, continues to be extremely strong, according to CBRE Hotels’ Americas Research (CBRE).
For the fourth consecutive year, CBRE presented a Historic Hotels of America – CBRE two-year forecast at the Historic Hotels of America annual conference. The company relies on historical hotel performance data from STR, and economic forecasts from CBRE Economic Advisors, to prepare its lodging forecasts.
Key points presented by Mark Woodworth, senior managing director at the company, to more than 200 owners, asset managers, general managers, and sales and marketing leaders at the Historic Hotels of America annual conference at The Omni Homestead (1766) include the following:
- Per STR, through the first three quarters of 2017, the aggregate RevPAR for historic hotels that are members of Historic Hotels of America placed between the national averages for all upper-upscale and all luxury hotels in the U.S.
- Through the next two years (2018 and 2019), RevPAR for historic hotels is expected to grow at an average annual rate of 1%, which is slightly less than the RevPAR forecasts for the nation’s upper-upscale hotels at 1.2%. Most of the RevPAR growth is expected to stem from increases in ADR.
- Annual occupancy levels for hotels that are members of Historic Hotels of America remains approximately 8 percentage points above the national average occupancy level through 2019.
- Based on a set of information pulled from CBRE’s database of hotel operating statements, historic hotels (including those not members of Historic Hotels of America) had an average ADR of $259.39, higher by more than 12% than the $231.16 ADR for contemporary hotels.
- Since 2009, historic resort hotels have achieved greater revenue and profit growth compared to their contemporary counterparts.
“The data strongly supports the idea that many consumers favor and will pay more for the unique hotel experience historic properties can offer,” said Woodworth.