...Solid, but Decelerating Growth: Accelerating U.S. GDP growth and low levels of new supply set the table for strong U.S. lodging industry fundamentals during the remainder of 2015. Robust demand has boosted occupancy rates, providing hotels with material pricing power. Fitch Ratings expects U.S. RevPAR to increase by 6% this year, based on a 1% occupancy gain and 5% average daily rate (ADR) growth. Precedent Supports Cycle Longevity: Improving economic fundamentals and limited new supply support Fitch's view that this upcycle will endure for a longer-than-average period. Trailing 12-month (TTM) RevPAR growth has been positive for 54 sequential months during this cycle, as of February 2015 -- a relatively short time compared to the 112-month recovery that began in the early 1990s. Although closer in duration to the 65-month recovery that started in the early 2000s, Fitch expects further RevPAR gains over the next one to three years based on its review of key lodging cycle leading indicators....
