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ADR pushes revenue rise at US budget hotels, according to new data

OYO

An increase in Average Daily Rate (ADR) helped budget hotels across the US see a rise in revenue YOY in 2018.

ADR is expected to grow at a rate of 2.7% between 2018 and 2023, helping to drive revenue up by 3.5% year-on-year in the US, according to new analysis from GlobalData.

The report also showed that cost-focused disrupters such as the OYO brand will drive future demand.

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Ralph Hollister, Travel and Tourism Analyst at GlobalData, comments: “OYO rolled out its first Townhouses in 2019 on US soil. There is great opportunity for expansion in the US due to the size of the nation and its variation of customer types. However, the US lodging market is highly saturated and fiercely competitive, meaning that OYO needs to maintain a gradual growth strategy to gauge the markets reception to its offerings.”

“Budget boutique hotels have become a favorite among business travelers with a shift in their preference to spend less money without compromising on the amenities and quality which they have come to expect.”

Tags : hotelsOYO
Zoe Monk

The author Zoe Monk

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