Moody's expects EBITDA growth in the sector of 4.5 to 5.5 percent in 2016. But after five straight years of improvement, occupancy, ADR and RevPAR are at all-time highs in the lodging industry, as evidenced in the chart below. Occupancy rates reached an all-time high in 2014 at 64.4 percent, and we expect a modest increase of less than 1 percent in 2015. However, new supply expected over the next 12 months may result in occupancy rates reversing course and beginning to decline. ADR will continue to drive RevPAR growth through 2016, primarily from the individual business and leisure travelers (the transient segment), who also drove the RevPAR increases of recent years. Mood's expects ADR and RevPAR growth in the mid-single digits in 2015 and 2016. Growth in ADR will occur most in the higher-scale chains (upscale, upper upscale and luxury), where there is little room for occupancy gains. Lower price segments, however, will see growth in both ADR and occupancy. Hotels will also benefit from growth in group bookings for business over the past two years, which have not yet translated into ADR growth because of the significant lag from the time of booking to room stay. Get the full story at Moody's