It’s no secret that hoteliers have been enjoying the perks of a seller’s market in recent years. Business travelers, leisure guests and convention attendees have been hitting the road, and demand in many destinations around North America has outpaced supply. As occupancy has increased, some convention organizers have struggled to secure enough rooms and settled for higher-than-desired room rates.
What will the future look like? Well, pretty much like the past, according to a new forecast from PKF Hospitality Research
. While STR Inc. indicates that there are approximately 132,000 rooms currently under construction in the US, PKF says this increase in supply will not be enough to drive any sort of downturn in rate. In fact, the company expects room rates will increase by 5.5 percent in 2016 followed by a 5.8 percent increase in 2017.
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Comparing Convention Destination Increases
Meeting professionals planning to take groups to the West Coast may be in for an unwelcome surprise. The markets with the biggest estimated increases in ADR are all on the Pacific Coast: Oakland, San Jose-Santa Cruz, Portland, Anaheim and Sacramento.
Some other cities will not see such a large increase in room rates, though. In San Antonio, Omaha, Columbia and Pittsburgh, ADR increases will all be well below the national average of 5.5 percent. Meeting professionals may be able to find great deals in Houston, too, where ADR is estimated to decrease by 1.7 percent.
Looking for tips to make your next round of negotiations a success? Click here for advice.