Travel Outlook Strong for Remainder of 2011

Press release from the issuing company

Wednesday, October 5th, 2011

As the third quarter of 2011 comes to a close, TravelClick'sSeptember 2011North American Hospitality Review indicates that hotel demand for the remainder of 2011 will continue to be strong. Business travelers continue to drive strong hotel performance, which has been the case over the course of 2011. The North American Hospitality Review is based on recent reporting of hotel bookings for the periodSeptember 1, 2011throughAugust 31, 2012.

For the next twelve months, committed occupancy is up 2.0 percent year-over-year, while average daily rate (ADR) is up 4.8 percent, and revenue per available room (RevPAR) is tracking ahead by 6.1 percent.

Markets showing the most year-over-year occupancy growth include:

Top Five Strongest U.S. Travel Markets

Committed
Occupancy


Reserved
ADR


Reserved
RevPAR









Detroit

10.5%


4.4%


10.1%


Indianapolis

10.2%


4.2%


9.4%


Philadelphia

6.9%


7.0%


7.3%


Seattle

6.1%


4.1%


5.7%


Chicago

5.2%


2.3%


3.0%




Markets that show negative occupancy growth include:

Top Five Weakest U.S. Travel Markets

Committed
Occupancy


Reserved
ADR


Reserved
RevPAR


Washington, DC

-2.0%


3.7%


-0.2%


Honolulu

-2.9%


12.1%


8.9%


Minneapolis-St. Paul

-3.1%


8.5%


7.5%


Denver

-3.3%


5.3%


3.9%


Miami

-6.1%


6.4%


15.1%




"As the late summer leisure travel season comes to a close, it is clear that the business travel segment will resume its role as the primary demand driver for U.S. hotels throughout the rest of 2011," saidTim Hart, executive vice president, business intelligence, TravelClick. "However it is important to note that, while the outlook for the travel industry is strong, we need to pay close attention to the recent pace of bookings, particularly in group travel, which has slowed over the last 30 days. Over the next several months, it will need to be determined whether this slower pace is an aberration, or indicates a true slowdown in group demand."

Third Quarter 2011 (July 2011September 2011)

In Q3 2011 business travel is up 4.0 percent in both committed occupancy and average daily rate (ADR) compared to last year. Leisure travel is up 1.0 percent in committed occupancy and ADR is up 5.1 percent. Group demand is down versus same time last year.

Markets that show strong occupancy growth in the third quarter areIndianapolis(12.1 percent),Tampa(12.4 percent) andPhiladelphia(9.8 percent). Markets showing negative occupancy growth areMiami(-17.2 percent),Honolulu(-6.1 percent) andAtlanta(-4.6 percent).

Fourth Quarter 2011 (October 2011December 2011)

With the majority of hotels in the top 25 markets increasing their rates for the fourth quarter, the average publically available rate for a room is up 9.8 percent from last year. Transient pricing continues to drive ADR, which is up 5.5 percent compared to Q4 2010. Committed occupancy continues to level off, increasing only 0.8 percent.

Markets that show above average occupancy growth in the fourth quarter areDetroit(29.7 percent),San Francisco(15.6 percent) andHouston(11.7 percent). Markets showing below average growth areAtlanta(-9.7 percent),Denver(-11.3 percent) andMiami(-25.9 percent).