News for the Hospitality Executive |
August 28, 2012 - Despite persistent
economic headwinds and heightened
uncertainty, an updated lodging forecast released today by PwC US
anticipates
revenue per available room ("RevPAR") recovery in 2012 to remain
intact, with slightly stronger gains in both demand and pricing than
previously
anticipated. While the US economy has inched forward in recent
quarters,
business and leisure travel continues to recover, with hotels
experiencing
solid demand and price gains in the second quarter. These recent gains,
coupled
with year-over-year improvement in group bookings currently in place
for the
balance of the year, off-set slowing related to the near-term weakness
in
economic fundamentals. As a result, US RevPAR is now expected to
increase 7.2
percent in 2012 and 5.6 percent in 2013.
PwC's outlook for RevPAR recovery reflects continued momentum in business travel, including gains in corporate meetings, as well as leisure travel growth that includes greater volume from international visitors. Year-to-date RevPAR through July was 7.3 percent ahead of last year. While results for July were weaker (4.3 percent RevPAR growth), in part due to the timing of Independence Day and the start of Ramadan, preliminary results from Smith Travel Research for the first 18 days of August show an approximately 7.2 percent increase in RevPAR. Overall, PwC expects lodging demand in 2012 to increase 3.0 percent, which combined with still restrained supply growth of 0.5 percent, is anticipated to boost occupancy levels to 61.5 percent, the highest since 2007. While hotels across the spectrum of price tiers are benefiting from the recovery, hotels in the higher-priced segments are expected to experience the strongest gains. Occupancy levels at hotels in the luxury, upper-upscale and upscale segments are expected to meet or exceed each segment's recent peak in 2007. As stronger business transient and group activity returns to the higher-priced hotels, revenue management tactics are anticipated to drive increased pricing, resulting in a continuation of meaningful RevPAR gains. Hotels in the lower-priced segments have not experienced as solid of a recovery in occupancy, but are still expected to realize increased room rates as demand gradually strengthens. "PwC continues to have an above-consensus outlook," said Scott D. Berman, principal and US industry leader, hospitality & leisure, PwC. "With occupancy surpassing recent prior peak levels in the luxury, upper upscale, and upscale segments, the lodging recovery is intact." A full copy of
PwC's US Lodging Forecast can be accessed by
visiting: http://www.pwc.com/us/en/asset-management/hospitality-leisure/publications/index.jhtml PwC firms help organizations and individuals create the value they're looking for. We're a network of firms in 158 countries with close to 169,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com. © 2012 PricewaterhouseCoopers LLP, a
Delaware limited
liability partnership. All rights reserved. PwC refers to the US member
firm,
and may sometimes refer to the PwC network. Each member firm is a
separate
legal entity. Please see www.pwc.com/structure
for further details. |
Contact: Laura Schooler PwC US +1-646-471-3229 [email protected] Web Site: http://www.pwc.com
|