PwC's updated lodging outlook incorporates recent hotel performance - strong recovery in demand, driven most recently by the group segment - and a macroeconomic environment that is expected to improve, after a recent temporary weakness. The outlook for supply continues to anticipate 1.0% growth in 2014, accelerating to 1.3% in 2015, as construction of new hotels gathers momentum (up 44.5% in the first quarter, compared to the same quarter last year). The lodging cycle has entered a new phase, with RevPAR recovery now beginning to percolate down to lower priced chain-scale segments, as hotels in the higher priced segments implement revenue management strategies to manage a stronger-than- expected recovery in group demand. In particular, upper midscale hotels are on track to surpass peak occupancy levels in 2015, while hotels in the midscale and economy chain- scale segments are anticipated to approach their prior peak occupancy levels. Get the full story at PwC (PDF 70 KB)