A combination of strong demand and measured new supply additions has resulted in very healthy fundamentals for the hotel industry, but experts say 2016 may mark the last year of expansion in this cycle.
Occupancy is expected to hit 65.6 percent by December, the highest annual level on record, according to a third quarter report from brokerage firm Marcus & Millichap. The average daily room rate has increased 5.2 percent to $120.99, and revenue per available room, or RevPAR, will reach almost $80 by the end of the year. Peter Nichols, national director in Marcus & Millichap’s national hospitality group, says owners and investors are still skittish from the recession and keep an eye out for a downturn event.
