As Economy Gains Momentum, Lodging Recovery Continues with Strong Room Rate Gains, Says PwC US - WTNZ FOX 43 Knoxville, TN

As Economy Gains Momentum, Lodging Recovery Continues with Strong Room Rate Gains, Says PwC US

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE PwC US

NEW YORK, Jan. 27, 2014 /PRNewswire/ -- As economic growth strengthens, PwC US anticipates continued momentum in travel activity to boost revenue per available room ("RevPAR") in 2014. An updated lodging forecast released today by PwC US shows the lodging cycle in a favorable stage, with above average occupancy levels and demand growth that continues to outpace hotel openings. As a result, accelerating growth in average daily rate ("ADR") is expected, as revenue management gains traction, resulting in RevPAR growth of 6.0 percent in 2014.

(Logo: http://photos.prnewswire.com/prnh/20100917/NY66894LOGO)

The updated estimates from PwC US are based on a quarterly econometric analysis of the lodging sector, using an updated forecast released by Macroeconomic Advisers, LLC in January and historical statistics supplied by Smith Travel Research and other data providers. Macroeconomic Advisers expects real gross domestic product ("GDP") to increase 2.6 percent in 2013, and accelerate to 3.1 percent growth in 2014, measured on a fourth-quarter-over-fourth-quarter basis.

Our updated lodging outlook incorporates clearer macroeconomic context and recent hotel performance – strong demand growth in the fourth quarter, albeit with somewhat lower ADR. Based on this analysis, PwC US expects lodging demand in 2014 to increase 2.4 percent, which combined with still-restrained supply growth of 1.0 percent by year-end, is anticipated to boost occupancy levels to 63.2 percent, the highest since 2006. Hotel construction activity is rebounding from a low base, but with fourth quarter room starts up solidly (44.1 percent ahead of prior year), the pipeline for 2015 openings is expanding. Hotels in the luxury, upper upscale and upscale chain scales have recovered occupancy levels more quickly and are now experiencing greater gains in ADR. In particular, luxury hotels are on track to reach 75.0 percent occupancy in 2014, and upper upscale hotels are anticipated to benefit from a gradual recovery in group activity and reach 72.7 percent.


2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Occupancy

59.2%

61.3%

63.0%

63.2%

62.8%

59.8%

54.6%

57.5%

59.9%

61.3%

62.3%

63.2%

ADR Growth

0.2%

4.3%

5.6%

7.5%

6.7%

2.9%

-8.6%

0.0%

3.8%

4.2%

3.9%

4.5%

RevPAR Growth

0.4%

7.9%

8.6%

7.7%

6.1%

-2.0%

-16.6%

5.4%

8.1%

6.7%

5.4%

6.0%

Source: PwC and Smith Travel Research. 
















"With the economic environment improving, US lodging recovery is now on solid footing," said Scott D. Berman, principal and U.S. industry leader, hospitality & leisure, PwC. "While the demand-supply balance remains favorable this year, the next phase of the cycle will be marked by a gradual return of new lodging supply, as investors and developers look to deploy capital in this sector."

About PwC US
PwC US helps organizations and individuals create the value they're looking for. We're a member of the PwC network of firms in 157 countries with more than 184,000 people. We're 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/US. Gain customized access to our insights by downloading our thought leadership app: PwC's 365™ Advancing business thinking every day

Learn more about PwC by following us online: @PwC_LLP, YouTube, LinkedIn, Facebook and Google +.

© 2014 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC US refers to the US member firm, and PwC may refer to either the PwC network of firms or the US member firm. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow

9000 Executive Park Drive
Building D Suite 300
Knoxville, TN 37923

Phone #: 865-693-4343
Fax #'s:
General: 865-691-6904
Sales: 865-691-6770
Traffic: 865-691-7527

FCC Public File
publicfile@wtnzfox43.com
865-693-4343
EEO Report
Closed Captioning

Powered by WorldNow
All content © Copyright 2000 - 2012 WorldNow and WTNZ. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.