Occupancy rates in the United States are the highest they have been in 30 years. Marcus and Millichap’s National Hospitality report showed healthy employment growth and increased consumer spending has continued to drive hotel performance nationwide. Occupancy in Q1 was recorded at 61.1 percent, which makes the total occupancy rate in the US over the last 12 months 66.1 percent.
Strong occupancy rates have raised RevPAR (revenue per available room) by 2.9 percent, up to $84.17. RevPAR is expected to continue growing, thanks in part to new tax laws which have driven economic growth as well as encouraging a healthy amount of hires and rising wages in the industry.
Furthermore, travel expenditures across the country are expected to increase by 5 percent this year. With record consumer and business confidence levels, there is the threat that the US will not have the supply to meet the growing demand for hotel rooms.