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PKF Sees Lodging Industry Slowdown in 2008

ATLANTA-Occupancy levels will decline slightly although average daily room rates will grow, according to PKF Hospitality Research.

By Natalie Keith | Updated on December 27, 2007

ATLANTA-The hospitality industry is expected to experience a modest slowdown in 2008, according to a PKF Hospitality Research report. For the year, PKF is projecting occupancy levels to decline slightly by 0.7% while average daily room rate will grow by 5.3%. The net result will be a 4.5% gain in RevPAR, the slowest pace of RevPAR growth since recovering from the 2001 to 2003 industry recession.

While the PKF forecast calls for slowed growth, the rate is still above the Smith Travel Research long-term average of 3.4%. The findings of the report were issued in the fourth quarter edition of Hotel Horizons, the quarterly lodging report produced by PKF.

“Given the cyclical nature of the lodging industry, a slowdown in performance does not come unexpectedly,” says PKF Hospitality Research president Mark Woodworth, in a released statement. “Hotel construction activity is picking up and will cause a modest imbalance between supply and demand.”

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