BASED on the strong surge in lodging demand that occurred during the first half of 2010, Colliers PKF Hospitality Research now forecasts that the average US hotel will achieve a 2.3 per cent increase in net operating income (NOI) during 2010. This follows a 37.8 per cent cumulative decline in profits experienced from 2007 through 2009, and is the first annual uptick in forecasted NOI since 2007.

‘With occupancy driving the growth in RevPAR in 2010, the rise in profits at this stage is somewhat underwhelming,’ said Mark Woodworth, president of PKF-HR. ‘However, going forward we will begin to see a more profitable formula for revenue growth as operators reclaim pricing leverage and room rates begin to rise.’