Cleveland Research Releases Positive 2016 Outlook Report

str

Cleveland Research Company has released the following information about Q3 and its outlook on Q4 and into 2016:

Research continues to point to good mid-single digit RevPAR growth for the Brand Co’s through the 4Q15 and into 2016 as industry participants note a rebound in group after a more modest 3Q, strong forward booking trends, and ability to drive rates.

The company expects 4Q RevPAR growth to show a slight pick-up from 3Q, about in line with guidance levels. October and the 1H of November sound to be especially strong for the group segment, which is supporting pricing power on last minute transient business. Feedback on both group and corporate remain positive, as many in the industry point to favorable group pace through 2016, increasing F&B spend per room, and good leverage going into corporate rate negotiations.

Advertisement

The company touched base with industry participants to get an update on how 4Q is tracking and how the budget/outlook for 2016 is materializing. Feedback points to a rebound from the more modest group and corporate demand seen in 3Q, which was hindered by the calendar set up. In this report, the company a.) includes feedback from a recent conversations with industry participants, b.) provides a recap of 3Q and updated 2015 outlook and estimates for RevPAR, room growth, and fee growth for the brands, and c.) includes forward commentary/guidance from the Brand’s and REIT’s most recent earnings calls. Overall, Cleveland Research Company remains constructive on the solid fundamentals in the lodging sector, which should support mid-single digit RevPAR growth for the next 12 months.

For the full report, click here.