After Strong First Quarter, CBRE Improves 2018 Long Island Lodging Forecast
13 Jun 2018
Based on a better-than-expected first quarter performance, CBRE Hotels’ Americas Research has enhanced its outlook for 2018. According to Smith Travel Research, U.S. hotels had 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 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.
On Long Island, the numbers are equally as positive and CBRE is forecasting a 3.2 percent annual increase in RevPAR in this region through the end of 2018; this exceeds the 2017 RevPAR by three percentage points. The firm attributes the 2018 outlook to strong first quarter performance in the sector. Growth predictions are based on increased average daily rates in the Long Island Market, which are forecast to increase 1.6 percent overall this year after declining slowly since 2015.
“As Long Island continues to evolve as a business and entertainment hub, demand is trending to outpace supply by 0.9 percent in 2018, which speaks volumes about the strength of the sector in this region. This market is no longer flying under the radar and is taking a turn to becoming a top vacation destination, even for locals looking to escape the city for a few days,” said New York-based Mark VanStekelenburg of CBRE Hotels.CBRE is forecasting a 72.9 percent occupancy rate in 2018 on Long Island, a 0.6 percent increase from the previous year. In 2019, CBRE predicts the occupancy rate will rise again to 73.4 percent, as CBRE forecasts demand will outpace supply by 0.8 percent.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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.