NEW YORK CITY– Long IslandHotels are looking at a year-end ramp-up in revenue and occupancyrates for a dip entering the 2020 New Year and into 2021, accordingto research from CBRE Hotels Research forecast for growth inrevenue per available room.

CBRE projects had a RevPAR increase of 3.7 percent, well abovethe national average, with occupancy up by 2 percent over2018,  and amidst a 0.4 percent reduction in supply forthe year, according to CBRE data.

With hotel performance slated to slow down amidst increasingsupply, the annual increase in the average daily room rate for LongIsland properties will remain steady at 1.5 to 2 percent as aresult of slow market growth, according to Mark VanStekelenburg ofCBRE Hotels.

In 2020 and 2021, hotel occupancy is slated to decline by 1.9percent with RevPAR expecting to dip precipitously and thenflatline in 2021.

"We foresee estimated annual GDP growth rates ranging from 1.5percent to 2.3 percent from now to 2022. While these numbersanticipate weaker economic growth, they do not anticipate any majorsetbacks in the economy," said R. Mark Woodworth, senior managingdirector of CBRE Hotels Research, in a prepared statement. "Ourforecasts for RevPAR change follow the same general pattern –growth, but at low levels ranging from 0.8 percent to 1.9percent."

The economy is forecasting steady revenues into year-end but isexpected to lose steam at some point. Hotel operators will look tokeep their expense growth under 2 percent to achieve nominal gainsin gross operating profits with revenue forecasts hovering around 1percent, and manage upward pressure on wages due to a tighteninglabor market. This is could prove a challenge for some operatorswho have averaged 4 percent annual growth over time into theirunderwriting.