Report: 2017 Hospitality Market Monitor
According to industry benchmarks, there are more than 5,050,000 hotel rooms in the United States spanning nearly 54,000 properties. In 2017, net new hotel rooms are projected to grow at a rate of 100,000. U.S. hotels grew revenue per available room (RevPAR) in excess of 3 percent in 2016, down from over 6 percent in 2015. This slowing of RevPAR can be attributed in part to relatively flat occupancy rates and record supply levels.
Available “room-nights” in the U.S. have reached an estimated 1.85 billion with demand hovering near 1.2 billion. As a result, competition for share of nights is expected to increase steadily in the next few years, especially if inventory levels continue to rise. Further, new inventory increasingly includes “sharing economy” alternatives such as Airbnb. While it is unlikely that the “sharing economy” will materially impact demand in the short term, it may very well curb supply growth in key markets before long.
In fact, 41% of travelers report having used Airbnb or other similar alternatives in 2016. Additionally, Millennials and Heavy Travelers (20 or more nights during the past 12 months) use it more often.Back to learn