An updated lodging forecast released today by PwC US expects revenue per available room ("RevPAR") growth in 2015 to be driven more by occupancy than previously expected, as average daily rate ("ADR") growth continues to look for a firm footing. Recent performance of the lodging industry has surprised industry participants, as solid ADR growth has struggled despite peak occupancy levels, which was expected to have given operators the confidence to drive targeted price increases in many markets. As a result of continued pricing challenges, the outlook for 2015 is reduced moderately, to a RevPAR increase of 6.5 percent, driven by lower-than-previously-expected ADR growth. In 2016, PwC expects RevPAR to grow 5.7 percent, driven by ADR. The estimates from PwC are based on a quarterly econometric analysis of the lodging sector, using an updated forecast released by Macroeconomic Advisers, LLC in October, and historical statistics supplied by STR and other data providers. Macroeconomic Advisers expects real gross domestic product ("GDP") to increase 2.2 percent in 2015, followed by a 2.5 percent increase in 2016, measured on a fourth-quarter-over-fourth-quarter basis. Based on this analysis and recent demand trends, which continue to be strong, industry occupancy in 2015 is expected to reach levels not seen since 1981, driven by a combination of strong demand momentum and a still-controlled supply environment. Despite peak occupancy levels, recent trends have pointed to continued pricing challenges as more significant ADR growth continues to defy expectations, even though many hotels in many markets are increasingly experiencing sell-out conditions. Get the full story at Hospitality.Net