US RevPAR Forecast Trimmed on Weak Transient Trends Says Fitch

Fitch | March 3, 2016

Fitch Ratings-New York-03 March 2016: Fitch Ratings has lowered its 2016 U.S. RevPAR growth forecast to 4%-5% from 4%-6%. RevPAR growth will not likely exceed 5% for the year due to weaker than expected fourth-quarter and year-to-date transient demand growth. Fitch expects group demand -- hotel stays booked in room blocks of 10 or more -- to drive RevPAR growth for the U.S. lodging sector during 2016 and the balance of this upcycle, exceeding our 4%-5% expectation for the year by 100 to 200 basis points. Group demand can support hotel cash flows and credit profiles, but it is another indication that the U.S. lodging cycle is peaking. Th...