STR and Tourism Economics have predicted the U.S.
hotel industry will report a 50.6% decline in RevPAR in 2020.
Supply is forecast to decline by 14.9%, demand by -51.2%,
occupancy by -42.6% to 37.9%, ADR by -13.9% to US$112.91, and
RevPAR by -50.6% to US$42.84.
“Travel has come to a virtual standstill, but we
expect the market to begin to regain its footing this summer,”
said Adam Sacks, president of Tourism Economics. “Once travel
resumes, the combination of pent-up travel demand and federal aid
will help fuel the recovery as we move into the latter part of
this year and next year.”
“The industry was already set for a non-growth
year, now throw in this ultimate ‘black swan’ event, and we’re set
to see occupancy drop to an unprecedented low,” said Jan Freitag,
STR’s senior VP of lodging insights. “Our historical database
extends back to 1987, and the worst we have ever seen for absolute
occupancy was 54.6% during the financial crisis in 2009. With
roughly six of 10 rooms on average empty, already wavering pricing
confidence will take a significant hit and drop ADR to a six-year