The 2017 outlook for U.S. hotels remains mixed, with near-record occupancy levels projected while ADR are expected to continue leveling off. According to December 2016 Hotel Horizons forecast report, CBRE Hotels’ Americas Research is projecting the U.S. lodging industry will achieve an annual occupancy rate of 65.3 percent in 2017, just shy of the 65.4 percent all-time record occupancy level expected for 2016.
CBRE is also forecasting an ADR increase of 3.3 percent next year. While this represents a change of 1.7 percent, ADR growth has been falling since 2014 and is expected to weaken through 2019.