Based on better than expected first quarter performance, CBRE Hotels’ Americas Research (CBRE) has enhanced its outlook for 2018. According to STR, U.S. hotels enjoyed a 3.5 percent increase in revenue per available room (RevPAR) during the first quarter of 2018, exceeding the 2.5 percent RevPAR gain expected by CBRE for the period. Accordingly, CBRE now is forecasting a 2.8 percent annual increase in RevPAR for U.S. hotels in 2018, a 0.3 percentage point enhancement over the 2.5 percent mark published in CBRE’s March 2018 Hotel Horizons® report.
In Newark, the hotel industry also had a very strong first quarter. During the first quarter, Newark enjoyed a RevPAR gain of 9.9 percent. Three-quarters of that growth came from an increase in occupancy.
“Newark’s strong Q1 performance, along with a softening of the supply pipeline for 2018, resulted in our 2018 RevPAR forecast being revised upwards from our prior forecast of a 0.2 percent decline to 3.6 percent growth,” said Mark VanStekelenburg, CBRE Hotels.
One factor that influenced the increase in RevPAR growth was the unusual weather in the Northeast during the first quarter. As a result of the numerous late winter storms, the hotel industry in Newark benefited greatly.
Additionally, New York City had a terrific first quarter, which also benefited the surrounding suburbs, including Newark.
In Newark, CBRE is forecasting a 75 percent occupancy rate for 2018, which is a 1.4 percent increase from the previous year. In 2019, CBRE predicts the occupancy rate will drop slightly to 74.8 percent.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
