|Hotels ring in new year on a high note.|
Wednesday, 22nd January 2014
Source : TravelClick
The North American hotel sector finished the last month of 2013 on a positive note, and all signs point to a prosperous 2014.
Both group and transient segments (individual business and leisure travelers) ended 2013 showing year-over-year increases in occupancy and average daily rate (ADR), according to data from the December 2013 TravelClick North American Hospitality Review (NAHR).
“The last quarter of 2013 was a real winner for hotels and we expect this growth to continue into the New Year,” said Tim Hart, executive vice president, business intelligence, TravelClick. “In December of 2013, the group segment’s contribution to RevPAR has surpassed the transient segment for the first time in many months. For many hoteliers, whose business is driven by meetings and conventions, this is welcome news.”
12 Month Outlook (December 2013 – November 2014)
For the next 12 months (December 2013 - November 2014), overall committed occupancy* is up 5.7 percent when compared with the same time last year. ADR is up 3.9 percent based on reservations currently on the books.
Transient bookings are up 5.9 percent year-over-year and ADR for this segment is up 4.6 percent. The transient leisure segment is showing occupancy gains of 9.1 percent and ADR gains of 4.9 percent. The transient business segment is flat (up 0.9 percent) with ADR up 5.1 percent.
Group segment occupancy is ahead by 5.6 percent and ADR is up 2.1 percent, compared to the same time last year.
Hart concluded, ”Weakness in the group segment was a source of concern for most of 2013, likely due to lingering economic uncertainty. However, 2013 finished strong for hoteliers, leaving a solid base of group business on the books for the New Year. At this point, 2014 is positioned to be a positive year for hoteliers.”
The December NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by December 1, 2013 for the period of December 2013 to November 2014.
*Committed Occupancy - (Transient rooms reserved + group rooms committed)/capacity
**Reserved Occupancy – Total number of rooms reserved/capacity
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