By Rob Starr, Content Manager, Big4.com
Reflecting stronger lodging demand and economic activity that exhibits less retrenchment than expected, an updated lodging forecast released recently by PwC US anticipates stronger revenue per available room (“RevPAR”) recovery in 2013, compared to the previous outlook.
The updated estimates in PwC Hospitality Directions US are based on a quarterly econometric analysis of the lodging sector, using historical statistics supplied by Smith Travel Research and other data providers, and an updated macroeconomic forecast released by Macroeconomic Advisers, LLC.
Despite the near-term economic challenges, lodging demand and, more importantly, pricing, are expected to remain on positive trajectories. Overall, based on the analysis referenced above, PwC expects lodging demand in 2013 to increase 1.8 percent, which combined with still restrained supply growth of 0.8 percent, is anticipated to boost occupancy levels to 62.0 percent, the highest since 2007.
Scott D. Berman, principal and U.S. industry leader, hospitality & leisure, PwC. comments:
“Recent results have exhibited the underlying tenacity of lodging recovery, despite ongoing economic uncertainty,” he said. “At the outset of 2013, the lodging industry has reached a point in the cycle where industry stakeholders are more confident about their performance, with more reason to be optimistic, based on the underlying strength of the broader travel and tourism sectors.”