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Containing euphoria: where are we in the cycle?
- Article from:
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Quarterly Trends in the Hotel Industry (USA)
- Article date:
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March 1, 2006
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Copyright informationCOPYRIGHT 2006 Pannell Kerr Forster. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Coming off a remarkable year of growth, participants in the U.S. hotel industry are in a state of euphoria. According to Smith Travel Research (STR), hotels in the major U.S. cities enjoyed a very strong 12.4 percent gain in RevPAR in 2005, the biggest growth rate recorded since 1979. With large increases in both occupancy (4.1 percent) and average daily rate (8.0 percent) driving the extraordinary gain in RevPAR, PKF Hospitality Research (PKF-HR) estimates that hotel profits grew in excess of 20 percent for the year. This level of profit increase is the greatest observed since 1978. Based on all these measurements, 2005 can be declared as one of the best years of performance ...