U.S Hotel Market Ends 2004 On A High Note
It’s official — 2004 was a very strong year for the hotel industry. Smith Travel Research reports that industry occupancy hit 61.3 percent at the end of 2004, a 3.7 percent increase over year-end 2003.
It’s official — 2004 was a very strong year for the hotel industry. Smith Travel Research reports that industry occupancy hit 61.3 percent at the end of 2004, a 3.7 percent increase over year-end 2003. Average room rate increased 4 percent to $86.41 while revenue per available room (REVPAR) increased by 7.8 percent to hit $52.93.
Smith Travel Research expects 2005 to be another strong stretch for the industry. The minimal growth of new room supply will help while occupancy should also continue to climb.
Industry room supply only grew by 1 percent in 2004 while demand — as in room nights sold — gained 4.6 percent. Room revenue for full year 2004 rose by 8.8 percent to reach $86.2 billion. Industry occupancy reached 56.9 percent by the end of 2004, an increase of 3.5 percent versus fourth quarter 2003. The firm also believes that room rate increases will drive REVPAR growth this year.
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