HOTELMARKETING.COM

PwC forecasts continuous hotel seller’s market

January 28, 2008 | Hospitality Industry

Hotel revenue per available room and average daily rate growth will flatten in 2008, but travel buyers should expect at least another few years of a hotel seller's market, according to PricewaterhouseCoopers' 2007 U.S. Lodging Industry Report and Forecast.

The forecast, which has a historical accuracy record of within a few tenths of a percentage point, indicated that average daily rates would increase by 5.6 percent in 2008, about the same level of growth forecast through the end of 2007. Revenue per available room was forecast to increase 5.1 percent, well below the high levels seen in 2004 through 2006 but on par with the increase expected for 2007.

PwC expects that occupancy will drop only slightly to 62.9 percent in 2008, compared with a 63.2 percent forecast for this year. It’s still a high level of occupancy, particularly in high-demand cities, said Bjorn Hanson, PwC’s hospitality and leisure group principal.

“2008 is within a few tenths of an occupancy point of the highest occupancies in 10 years,” he said. “Right now, pricing power in cities like New York, San Francisco and Boston is driving these sets of numbers.”

Get the full story at BTNonline

Visit our sponsors: