Average daily rate growth for our 290 hotels was 5.9% in the first quarter of 2012, an increase in each portfolio and for 14 of our 15 brands this quarter, compared to last year as our operators continued to manage guest mix and pushed rate during peak travel periods. Despite an unsteady macroeconomic environment and excluding renovation hotels, we have continued -- we have seen continued occupancy rate and RevPAR improvement in 2012 as we did in 2011, and we continue to press our managers to focus on revenue management and cost control. Our managers' 2012 RevPAR forecast for our hotels are in the range of 5% to 8%.
There is optimism about the ongoing lodging recovery as a result of constrained supply growth, continued steady demand and increases in average daily rate in GOP margins. Although modest economic growth continues to create uncertainty about the sustainability of this recovery, we continue to see steady growth and a greater share of that growth from rate than occupancy, which helps margins.
Our planned 2012 and 2013 capital program is extensive, with approximately 200 hotels expected to be renovated during that period. Our 2012 and 2013 results are likely to continue to be choppy due to these renovations and the timing of hotel brand conversions. We are pleased with the operating performance of the 36 hotels that completed renovations in 2011, with RevPAR up 14.3% and GOP margin up 580 basis points at these hotels in the first quarter of 2012 versus 2011.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV