“Demand is continuing to outperform even our strong estimate of demand this year. … Our model is reacting to that,” said Jamie Lane, senior economist at PKF-HR. “We’re expecting occupancy to finish 2014 at 64.4%. That’s not an acceleration of demand; it’s really a continuing of what we’ve seen so far in 2014. We think that number’s going to be very easily attainable. Just a slight increase of occupancy next year (of 0.9%) gets us to record levels.” STR, by comparison, is forecasting occupancy to finish 2015 at 64.2%. “We’re not as bullish,” said Jan Freitag, the data company’s senior VP of strategic development. “We think that will translate into pricing power as scarcity really comes into the market,” Lane said. “We’ve started to see those prices and (average daily rates) start to increase quite dramatically in a lot of the markets that have either reached their previous peak occupancy level or are close to.” PKF-HR is forecasting ADR growth of 4.5% by year end and 5.7% during 2015. STR’s forecast calls for rate gains of 4.2% and 4.4% during 2014 and 2015, respectively. Get the full story at Hotel News Now