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PwC’s Manhattan Lodging Index: Q2 2024
PwC’s Manhattan lodging index | August 27, 2024
Manhattan Lodging Overview The rate of growth in occupancy, average daily rate (“ADR”) and revenue per available room (“RevPAR”), while robust, continued to decelerate. Luxury hotel occupancy benefitted from increased demand, while ADR growth levels for lower priced properties continued to show significant improvements. For the overall Manhattan hotel market, Q1 RevPAR increased 9.4 percent while Q2 increased 6.8 percent, from the same respective periods in 2023. "The Manhattan hotel market averaged an occupancy level of 87.2 percent in Q2 2024, solidifying a return to stabilized pre-covid levels. While RevPAR growth decelerated sig...
Hospitality CEOs on the Industry Today: Transformation, Value, Optimism
Jeanelle Johnson | July 25, 2024
By Jeanelle Johnson The annual NYU International Hospitality Industry Investment Conference, now in its 46th year, offers a deep dive into the current and future state of the hospitality industry. This year, I had the privilege of leading a CEO panel discussion on "Innovative hospitality concepts, new spaces for expansion." I describe innovation in hospitality as the transformation of how the industry creates, delivers and captures value. Drawing from PwC’s 27th Annual Global CEO Survey, I highlighted a few key statistics to kickstart our conversation: 52% of CEOs say their top goal over the next three years is to identify new sour...
From Paper to Platform: Future-Proof Your Procurement Team With Digital Transformation
Johannes Vocke | May 21, 2024
By Johannes Vocke, FutureLog Chief Financial Officer In an eye-opening survey by PwC, global procurement professionals have spoken when it comes to their digital transformation initiatives. By 2025, procurement departments have an average target of 72% digitalization, with efficiency, transparency, traceability, and cost savings as some of their main drivers. Procure-to-Pay (P2P) has also benefited the most from the digital transformation of any procurement process, ahead of areas like spend analysis and supplier management. This may be because recent reports cite that digital procurement can reduce processing costs by up to 50% and increa...
PwC’s US Hospitality Directions – May 2024
PwC Hospitality Directions | May 21, 2024
Economic uncertainty, an upcoming election and geopolitical tensions to likely impact hotel performance through 2025 Growth in leisure demand has moderated for US hotels. Domestic travelers have continued to seek out experiences internationally and inbound international traffic has yet to recover to pre-pandemic levels. An increased appeal of short-term rentals by leisure travelers has contributed to moderating leisure demand for hotels. Individual business travel and group demand have continued to improve but have still not been able to offset the softening of leisure demand. As a result, occupancy levels have declined year-over-year in eac...
PwC 2024 AI Business Predictions
PwC | February 22, 2024
Technological advances, surging investments and the competition for talent are all working toward one thing: In 2024, artificial intelligence (AI) will start to fundamentally change how business gets done. It will impact how companies grow revenue, conduct everyday operations, engage customers and employees, build new business models, and more. Seventy-three percent of US companies have already adopted AI in at least some areas of their business, according to our 2023 Emerging Technology Survey — and generative AI (GenAI) is leading the way. One year after ChatGPT hit the market, more than half of the companies we surveyed (54%) have i...
PwC’s Manhattan Lodging Index: Q4 2023
PwC’s Manhattan lodging index | February 12, 2024
The rate of growth in occupancy, average daily rate (“ADR”) and revenue per available room (“RevPAR”), while strong, continued to decelerate as the market moves on a path towards stabilization. Lower-priced hotels benefited from the customer's level of rate fatigue being felt in the market, with ADR growth levels for midscale properties triple that of higher-priced hotels in Q4. 2023 RevPAR experienced a year-over-year increase of 16.5 percent, with Q3 seeing an increase of 13.6 percent and Q4 being up 11.5 percent. “The Manhattan hotel market maintained an occupancy level above 80 percent in each month of the final three quarter...
Economic Headwinds and Geopolitical Tensions Will Likely Impact Hotel Performance Through 2024 According to PwC
Hospitality Directions | November 13, 2023
Leisure demand, while still strong, began to soften in the back half of this year for US hotels, as other parts of the world continued to reopen their vacation destinations and leisure travelers began to once again feel safe traveling abroad. Increases in individual business travel and group business have not yet been able to fully offset this softening. As a result, occupancy levels have declined in each of the past seven months, relative to comparable 2022 levels, and are expected to continue to be down during the remainder of this year and through at least the first quarter of 2024. Room rate growth had played a significant role in the ini...
PwC Report: Hospitality Tech Investment Pays Off
PWC HOSPITALITY DIRECTIONS | August 23, 2023
The hotel business ecosystem is exceptionally complex: Brands, owners and operators all strive to maintain profitability in an inherently low-margin, highly competitive sector. The goal? To satisfy investors while also meeting — ideally, exceeding — guest expectations. Hotels also need to attract and maintain skilled talent in the constrained late-pandemic labor market. Facing rising wages and a diminished worker pool, more than 70% of hotel executives are turning to technology tools to automate a portion of their operations and boost employee efficiency.1 PwC experience corroborates the benefits of technology investments. One bran...
