Hotel Occupancy Continues to Surprise in 2015 According to PwC US
May 20, 2015 12:25pm
The estimates from PwC are based on a quarterly econometric analysis of the lodging sector, using an updated forecast released by Macroeconomic Advisers, LLC in April and historical statistics supplied by STR and other data providers. Macroeconomic Advisers expects real gross domestic product ("GDP") to increase 2.8 percent in 2015, followed by a 2.5 percent increase in 2016, measured on a fourth-quarter-over-fourth-quarter basis.
Based on this analysis and recent demand trends, PwC expects industry occupancy in 2015 to reach levels not seen since 1981, with a number of factors contributing to the continued increase in these levels including the expansion of online distribution channels, which have helped hotel operators fill rooms during more off-peak periods. Average daily rate growth is expected to remain somewhat controlled for the balance of this year partly due to the impact of the increased value of the U.S. Dollar, which is expected to restrict the level that hotel operators are able to raise rates, primarily in certain gateway markets that cater to inbound international leisure visitors. Supply growth is starting to get more meaningful, and is expected to accelerate to 2.2 percent in 2016, with the increase in available hotel rooms exceeding the long-term average of 1.9 percent for the first time since 2009. As a result, while occupancy levels are expected to begin to stabilize, these peak levels, coupled with the absence of this year's drag from the U.S. Dollar, is expected to support an average daily rate-driven RevPAR increase of 6.1 percent.
© 2015 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
Tips to Fill Your Urban Hotel This Summer
U.S. Lodging Fundamentals Portend Improved RevPAR Growth
Manhattan Lodging Index - Fourth Quarter 2017
PwC's Lodging Outlook for U.S.: Hospitality Directions for 2018
PwC: Global Economic Growth in 2018 on Track to Be Fastest Since 2011
PwC's Manahattan Lodging Index Q3 2017
An Analysis of Franchise Fees
Hotel Occupancy Continues to Reach New Heights but Rate Not Keeping Pace
PwC's Hospitality Directions Forecast
Africa's Hospitality Sector Withstands Economic Headwinds
U.S. Lodging RevPAR to Decelerate According to Fitch
Lodging Demand Increases Amidst Increased Consumer Confidence, According to PwC
The Five Megatrends That Will Impact the Middle East’s Travel and Tourism Industry: PwC Report
Post-Election Surge in Consumer and Business Sentiment Suggests Momentum for 2017, According to PwC
Boston's Lodging Supply Growth Outpaces Demand, Resulting in Lowered Projected Performance
US Leisure Strength Unsustainable; RevPAR Likely to Turn
US RevPAR Forecast Lowered to 3%-4% Amid Signs of Fatigue
South Africa’s Hotel and Tourism Sector Set for Steady Growth as Visitor Numbers Continue to Grow
Hotel Loyalty - What’s Driving Customer Loyalty for Today’s Hotel Brands? A PwC Report
In 2016, Average Daily Rate Reluctantly Takes the Driver’s Seat According to Updated Lodging Forecast
Please login or register to post a comment.