RevPar growth is slowing, and experts at ALIS expect that it will continue to slow through 2019. On the Numbers – What to Expect in 2019 and Beyond panel at ALIS this week, speakers talked about the slow down in RevPar growth, and how hotel owners could drive growth in the year ahead. The panel included panelists Kristian Gathright, EVP and COO at Apple Hospitality REIT; Cindy Estis Green, CEO and co-founder at Kalibri Labs; Vail S. Ross, SVP at STR; Mark Woodworth, senior managing director at CBRE Hotels; and Mark Wynne Smith, Global CEO of Hotels at JLL.

“People are focused on occupancy, but I think they need to be more granular,” Green said. There has been a focus on increasing occupancy to drive RevPar growth, but Green said that the focus on occupancy combined with rate transparency from online booking channels has driven the average daily rate down, putting downward pressure on RevPar. “Strong consumer demand and guest paid revenue is growing, but there is a race between where business is coming in,” said Green.

Last year, RevPar grew 2.9%, and in 2019 Ross projects RevPar growth will fall to 2.7%, and is less confident about ADR. “If things can stay the way that they are, we are confident. ADR, we are more conservative,” she added. “We are confident today, and any uncertainty is around ADR.”