Latest News
HomeStatistics & TrendsPwC U.S. lodging midyear forecast: Occupancy and room rates set record highs
PricewaterhouseCoopers Hospitality & Leisure Practice

PwC U.S. lodging midyear forecast: Occupancy and room rates set record highs

PricewaterhouseCoopers Hospitality & Leisure Practice has issued its revised U.S. Lodging Forecast with few changes from its prior forecast…

PricewaterhouseCoopers Hospitality & Leisure Practice has issued its revised U.S. Lodging Forecast with few changes from its prior forecast. RevPAR (Revenue per Available Rate) will increase 7.8 percent in the current forecast compared with 7.3 percent in the previous forecast. PricewaterhouseCoopers issues regularly scheduled updates every quarter.



PricewaterhouseCoopers forecasts positive occupancy growth through 2007 and record high room rates. PricewaterhouseCoopers forecasts occupancy will reach 63.4 percent in 2005, an increase of 3.3 percent, and will be at the highest point since 1997. Never before has the industry experienced five consecutive years of positive occupancy gains. The industry experienced four consecutive years of growth during the period 1992 through 1995 and in the late 1970s and the last time the industry experienced two consecutive years of strong positive occupancy growth was in 1993 – 1994.



Room rates will achieve record highs at $89.97 in 2005. At a growth rate of 4.3 percent, this is the strongest increase since 2000, when the rate was 5.4 percent.



The luxury segment is forecast to experience the strongest average RevPAR growth in the period 2004 through 2007, at 9.9 percent. In 2005, the segment`s RevPAR is forecast to increase by 11.3 percent, the highest growth rate since 1996. The luxury segment`s occupancy is forecast to reach 70.8 percent in 2005, the highest since 2000.



The midscale without food and beverage segment is expected to experience the second highest average RevPAR growth rate during the period 2004 to 2007 at 7.9 percent. The segment is expected to reach occupancy of 66.8 percent in 2005, the highest since 1996. RevPar is expected to increase by 12.2 percent in 2005.



PricewaterhouseCoopers forecasts industry profits to reach $20.8 billion in 2005, the highest level since 2000, and only $1.7 billion below the record set in 2000. In 2006, profits are expected to reach a new record high of almost $25 billion.



In 2004, the business travel rebound boosted overall lodging demand by approximately 110,000 average daily rooms, according to analysis of Smith Travel Research data, resulting in a 4.5 percent increase in room demand. In 2005, PwC forecasts that the business travel rebound will contribute 102,000 average daily rooms to total U.S. demand.

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

18/07/2024
17/07/2024
16/07/2024
15/07/2024
12/07/2024