Hotels in the Houston area will continue to experience a decline in revenue in 2010, according to predictions from a large hospitality consulting firm.
PKF Hospitality Research is forecasting that local hotels will have a 3.1 percent decrease in revenue per available room, or RevPAR. This would be the second year for a revenue drop in Houston.
PKF Consulting Vice President Randy McCaslin adds that occupancy rates in Houston are expected to drop 2.4 percent and average daily room rates are expected to decline 0.7 percent this year.
Houstonâ€™s revenue performance forecast is worse than the national projection.
PKF predicts U.S. hotels will experience a 1.4 percent drop in RevPAR in 2010, marking the third consecutive year of declining revenue.
Despite the negative numbers, PKF reports that outlooks are becoming more predictable, which helps hotel managers make more accurate financial decisions.
Atlanta-based PKF Hospitality Research is the research affiliate of PKF Consulting Inc. of San Francisco.