hospitality directions
Strength in Average Daily Rate Now Expected to Drive 2022 RevPAR Above 2019 Levels
PwC Hospitality Directions | May 23, 2022
Despite an initial pullback in the recovery timeline caused by a surge in infections from a new omicron variant of the COVID-19 virus in December and January, continued improvement in top-line metrics for US hotels is expected for the remainder of this year and next. While leisure travel continued to drive much of lodging’s demand in Q1, individual business travel and group business have started to emerge as we head into the warmer months. Strong leisure business is expected to cause demand compression over the summer, driving room rates and resultant RevPAR levels to new highs. If tensions ease in Ukraine and immunity levels continue to in...
PwC Hospitality Directions US: January 2019
Hospitality Directions | January 30, 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 reachin...
PwC Hospitality Directions U.S. Report Updates Lodging Outlook Suggesting Sustained Momentum Through 2019
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. ...
PwC Hospitality Directions US: May 2018
PwC US | May 29, 2018
Following a better than expected first quarter, lodging metrics continue to remain positive. First quarter results yielded stronger than expected increases in demand for many hotel companies, as well as slightly stronger rate growth, driven primarily by an increase in commercial transient travelers. Year-over-year for the first quarter, RevPAR increased across the transient segment nationally, led by rate growth. As hotels continue to feel the pressure from rising wages, insurance costs and other expenses, the components of RevPAR growth become more important. With occupancy levels at record levels, an expected uptick in commercial ...
PwC’s Lodging Outlook for U.S.: Hospitality Directions for 2018
PwC | January 23, 2018
Compelling economic and industry fundamentals suggest continued momentum for 2018 Less than a month into 2018, the eight-year growth cycle in the lodging industry lumbers on. While RevPAR performance in the third quarter of 2017 appeared to take a breather, the combined impacts of improving economic fundamentals and the regional increase in performance associated with the aftermath of Hurricanes Harvey and Irma resulted in a stronger fourth quarter, driving home a solid finish for the year. Going forward, the Tax Cuts and Jobs Act is reportedly providing a boost in business and consumer sentiment, and is expected to contribute to GDP gr...
