PwC Hospitality Directions US: January 2019

/PwC Hospitality Directions US: January 2019

PwC Hospitality Directions US: January 2019

|2019-01-30T15:07:32-05:00January 30th, 2019|

Our US lodging outlook remains stable, driven by a continued increase in consumer spending; increasing, albeit decelerating business investment; and relatively strong consumer confidence.

Despite near-term risks, solid economic fundamentals support decelerating RevPAR growth in 2019.

  • Fourth quarter lodging fundamentals came in just below expectations, with year-over-year RevPAR growth of 2.4 percent, driven by an average daily rate increase of 2.0 percent.
  • Despite concerns over the impact from the trade tensions with China and rising construction/labor costs, the US lodging industry ended 2018 on solid footing, with occupancy reaching levels not seen since 1981.

Lodging supply is expected to increase at a rate close to the long-term average; however, tightening financing conditions and further increasing labor/construction costs may cause a drag on supply growth. Overall, RevPAR in 2019 is expected to increase at a decelerating pace, driven exclusively by growth in ADR.

Counter-balances to this outlook to be watchful of include any negative near-term impact from the partial US government shutdown, continued trade tensions and effects from tariff-rate implementation, political uncertainty amid partisanship, and increasing interest rates.

View PwC's Hospitality Directions: US January 2019.

About Hospitality Directions

PwC Hospitality Directions US is a near-term outlook for the U.S. lodging sector, commonly used by industry decision-makers and stakeholders to better understand the impact of policy and other macro-environmental factors on the sector’s operating performance. Our outlook includes metrics for the overall sector as well as for the chain scales, and is used by our clients for strategic planning and capital, allocation purposes, demand and supply, occupancy, average daily rate, and revenue per available room.

Scott D. Berman
Principal and US Industry Leader, Hospitality & Leisure
Phone: +1 305 375 6210

Warren Marr
Managing Director, Hospitality & Leisure
Phone: +1 646 313 3618

Abhishek Jain
Director, Hospitality & Leisure
Phone: +1 646 471 2016

[email protected] /

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