STR and Tourism Economics upgrade their latest 2021 U.S. hotel forecast

Wednesday, May 12, 2021

STR and Tourism Economics upgraded their latest 2021 U.S. hotel forecast as a result of better-than-expected demand in the first quarter. However, full demand recovery is still projected for 2023, while revenue per available room is expected to be close to a full recovery in 2024, according to STR.

Occupancy for 2021 is expected to be 53.3 percent, which is higher than the 48.6 percent forecast in January. The companies’ newly projected 2021 average daily rate of $109.47 is $1.79 higher than the previous forecast. The three key performance indicators for the 2022 forecast, however, are all somewhat down from what was expected in January.

Tourism Economics president Adam Sacks said, “An effective vaccine rollout and generous fiscal stimulus will drive the fastest single-year economic expansion in nearly 40 years. Leisure demand is gathering strength with substantial recovery in sight for many markets. However, transient business, group and international travel face continued headwinds, and a full recovery will take several years.”

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