Jun 16, 2017
Dallas hotel occupancy outlook healthy
DALLAS – Though national revenue per available room (RevPar) is projected to increase by 3 percent nationally in 2017, new data from CBRE Hotel forecast show that increase to be around 1.4 percent.Though the...
DALLAS – Though national revenue per available room (RevPar) is projected to increase by 3 percent nationally in 2017, new data from CBRE Hotel forecast show that increase to be around 1.4 percent.
Though the local growth is only half of the national average, Dallas hotel experts think the market looks healthy.
First quarter 2017 saw a dip in Dallas hotel occupancy, but CBRE Hotels Consulting Director Jeff Binford said that is the result of new development investments. There is more supply online or in the pipeline than there is demand, Binford said.
The DFW hotel market is extremely healthy, Dowdle Real Estate President Lynn Dowdle said.
RevPAR and average daily room rate are high, occupancy is solid and new product is getting saturated, she said.
Hotel supply in the U.S. is expected to grow by 2 percent in 2017, compared to a 2016 gain of 1.6 percent, according to Hotel Horizons. Lodging demand is expected to increase by 2.1 percent this year.
Another recent growth trend has been the rise of hotels within mixed-use developments.
“The hotel component [in mixed-use developments] is gaining ground in terms of demand. It only makes sense to include a hotel if you’re offering any kind of office setting, and now developers know it’s important,” she said.
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