Hotels Ring in New Year with Daily Rate Growth

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Hotels will be ringing in 2015 with a "strong and profitable start," according to hotel consultancy TravelClick, which today published data from its December 2014 TravelClick North American Hospitality Review, showing a 4.6 percent increase in average daily rate (ADR) at U.S. hotels for the next 12 months.

"The upward pricing momentum that began in 2014 is continuing into the New Year," John Hach, TravelClick's senior vice president of global product management, said in a statement. "While there is cause for celebration, hoteliers still need to be watchful that the pace at which transient rooms are being booked may be slow. The bottom line is that hoteliers had a lot to be thankful for in 2014 as group rebounded and ADR and occupancy continued to increase; and there is a lot to look forward to in 2015, particularly the fact that we expect hotels will continue to see sustained ADR growth throughout most North American markets."

As Hach indicated, group business continues to be strong: Group ADR, occupancy, and revenue per available room (RevPAR) were up 2.3 percent, 5.3 percent, and 7.8 percent, respectively, in the fourth quarter, compared to 4.2 percent, 3.3 percent, and 7.7 percent, respectively, across all segments. Meanwhile, group occupancy and ADR for the next 12 months are up 2.4 percent and 3.7 percent, respectively, compared to the same time last year.

"Strong ADR and occupancy gains in 2014 led to increases in [RevPAR] in Q4, up 8 percent for October and November and 6.6 percent for the month of December," Hach continued. "We're very optimistic that RevPAR performance will be robust in the upcoming year as savvy hoteliers increase their reliance on advanced business intelligence solutions to ensure they maximize revenue."

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