Finance & DevelopmentFinanceGroup Bookings Brighten Hotel Outlook

Group Bookings Brighten Hotel Outlook

NEW YORK—Committed occupancy and average daily rates (ADR) for the first quarter of 2017 are showing major signs of growth with group travel leading the way despite the continuing lag in transient booking pace in the fourth quarter of 2016, according to new data from TravelClick’s November 2016 North American Hospitality Review (NAHR).

Across all travel segments in the first quarter of 2017, occupancy and ADR are up 6.7 percent and 2.7 percent, respectively, and occupancy for the group segment is up 6.8 percent.

“Even with the slowing transient reservation pace this month, especially within the business segment, hoteliers should look to the New Year for a promising outlook,” said John Hach, TravelClick’s senior industry analyst. “Group occupancy and booking pace in particular are showing notable signs of improvement in 2017, especially within the first quarter.”

For the next 12 months, transient bookings are up 2.7 percent year-over-year, and ADR for this segment is up 2.0 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 3.9 percent with ADR gains of 2.8 percent. The transient business (negotiated and retail) segment is down -0.8 percent, but ADR is slightly up 1.7 percent. Lastly, group bookings are up 3.8 percent in committed room nights over the same time last year, and ADR is up 2.6 percent.

“While committed occupancy growth continues within the majority of North American markets, the decline in the pace of new reservations throughout the past two quarters is beginning to flatten,” added Hach. “This environment amplifies the need for hoteliers to compete for bookings well into the upcoming New Year, and it’s especially important for hoteliers to invest and leverage advanced pacing business intelligence solutions to maximize revenue per available room (RevPAR) within their local markets.”

The November NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by November 1, 2016, from the period of November 2016 to October 2017.

RELATED ARTICLES

Dreamscape Hospitality Assumes Management of Three Hotels in Houston

HOUSTON, Texas—Dreamscape Hospitality announced that it has assumed management of three hotels in Houston, Texas. "We are excited to deepen our presence in Texas through...

Hilton Announces Plans to Debut Spark by Hilton in Puerto Rico

PONCE, Puerto Rico, and MIAMI, Florida—Hilton announced the signing of Spark by Hilton Ponce, marking the upcoming debut of the brand in the Caribbean...

Wyndham Announces Partnership With Cygnett

DELHI—Wyndham Hotels & Resorts announced a new strategic alliance with Cygnett Hotels & Resorts that will not only introduce its La Quinta by Wyndham...

New Pyramid Global Hospitality COO Continues Focus on Big Data to Benefit Owners

Pyramid Global Hospitality Chief Operating Officer Eric Habermann retired in April following seven years with the company and a nearly 40-year career in hospitality....

Grand Hyatt Kauai Resort & Spa Launches Scholarship Program

Grand Hyatt Kauai Resort & Spa, a 605-room resort, announced the launch of a scholarship program to support the continued education of its colleagues...

Hilton Surpasses 500 Hotels in Florida

MCLEAN, Virginia, and MIAMI, Florida—Hilton announced a major milestone as the company surpassed 500 open hotels across Florida. This growth was fueled in part...