PwC revises 2018 U.S. Lodging Forecast with rosier outlook
Nov 16, 2017
The most recent version pegs 2018's average daily rate, occupancy and demand growth at slightly higher levels than the last outlook, issued in September.
ADR is now forecast to grow 2.2 percent, up from the 2.1 percent previously predicted. Occupancy is improved from -0.1 percent to 0.2 percent. Demand is projected to grow to 2.1 percent instead of to 1.8 percent, which now puts it ahead of the 1.9 percent projected supply growth.
PwC attributes the improvements to strong economic momentum and a "more tangible" prospect for tax policy reform. Additionally, hurricanes Irma and Harvey have boosted hotels in the southern U.S., as they are providing lodging to displaced residents and aid workers. That recovery effort is expected to continue into 2018 and further bolster lodging results.
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