PwC Hospitality Directions US | August 28, 2018

Stronger economic indicators in Q2, coupled with accelerating group demand, suggests sustained momentum for the lodging sector through 2019

Second quarter fundamentals remained positive, as consumer confidence continued.

Here is a quick summary of its findings:

  • Q2 results yielded strong demand for hotels, outpacing increases in supply, as well as the highest Q2 increase in ADR since 2016.
  • Continued growth in demand led to a midyear year-to-date occupancy of 65.9 percent.
  • Looking ahead to 2019, there is an expectation of continued confidence by hoteliers as increases in room rates continue to become a bigger driver of RevPAR growth.
  • Economic factors that may dampen the industry confidence and the perceived positive impacts of the Tax Cuts and Jobs Act are trade tensions with China and rising cost of labor for entry-level jobs.