Plan to spend time in a hotel this summer? You’re far from alone. Marcus & Millichap reports that the hotel industry is poised for a big 2015 as consumers find themselves with more money to spend on discretionary items, including overnight trips.
Marcus & Millichap says that hotel occupancy rates will hit 65.2 percent in 2015. That’s a strong number. It’s up from 64.4 percent in 2014 and ranks as one of the highest levels since Marcus & Millichap began tracking hotel occupancy rates.
Another key indicator that is on the rise? RevPAR. If you don’t work in the hotel industry, you might not be familiar with this term. But it stands for revenue per available room, and it’s one of the most important indicators of the industry’s health.
According to Marcus & Millichap, RevPAR will rise to $79.32 for 2015. That’s up 6.8 percent from 2014, when this figure stood at $74.28.
At the same time, overall revenue wil grow 8.1 percent for 2015 in the hospitality industry, according to Marcus & Millichap.
The reasons for this improvement? There are several. Marcus & Millichap, though, says that gas prices are a key factor. The cost of gas has fallen. Marcus & Millichap says that by one estimate lower gas prices will save the average household $750, money that they can spend on other items.