Categorized | Hotels

Hotel room rates on the rise…

Posted on 01 September 2010

PricewaterhouseCoopers says its U.S. lodging forecast shows a lodging recovery that accelerated in the first half of 2010 and will gain further traction during the remainder of 2010, as increasing demand begins to rebalance pricing power. Although the pace of demand growth is expected to moderate during the second half of 2010, PWC said, the recovery is expected to shift from almost exclusively demand-driven to a mix of demand and room rate growth, confirming the return of the business segment. With growing demand and decelerating supply growth, PWC anticipates that the U.S. occupancy rate will increase 2.6 percentage points for 2010, reaching 57.2%.

 

The pricing outlook for the remainder of 2010 and 2011 has improved substantially, resulting in an earlier-than-expected recovery in average daily rate during the second half of 2010. This synergistic effect is expected to result in a 4.1% increase in revenue per available room in 2010.

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