Marcus & Millichap’s Third Quarter National Report, has predicted that occupancy, ADR and RevPAR levels are on track to reach new highs by the year’s end.
The national outlook shows occupancy levels jumping 120 basis points from 64.4 percent to 65.6 percent, the highest annual level on record. Meanwhile, RevPAR has jumped from $74.09 to $79.33 year-to-year, and ADR has increased from 4.4 percent to 5.2 percent.
In more positive news, although demand growth is down from 4.4 percent in 2014 to 3.1 percent this year, the study notes that the balance of demand to supply (which was bumped up from .8 percent to 1.3 percent this year) points to positive near-term results. Additionally, markets that were lagging in U.S. trends until recently have experienced great results in the first half and the start of the third quarter. For instance, Chicago experienced a travel volume through July that was more than three times the rate of growth over the same span in 2014. Sacramento and Atlanta made similar gains.
For the full report, click here.