Buyers are facing a tough negotiating climate with hoteliers this year, but PricewaterhouseCoopers reaffirmed its forecast that the pendulum could soon be swinging back toward buyers.

In 2008, supply growth finally should outpace demand growth, according to Bjorn Hanson, PwC's global hospitality leader. While it has hovered below 1 percent since 2004, PwC forecast the supply growth rate would be up to 1.9 percent in 2007 and to 2.4 percent in 2008. Daily room sales, meanwhile, will be down in the 2 percent range, according to the forecast.

Hotels also will begin to see a slowing in the rapid growth of revenue per available room, Hanson said. RevPAR growth was at 8.5 percent in 2005 and is forecast at 8 percent this year, but it should drop by more than 2 percentage points in 2007 and even further in 2008. Growth in average daily rates, meanwhile, also will drop from the forecast 6.8 percent rate forecast by PwC for this year.

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