PwC Hospitality Directions: May 2014

May 2014
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PwC Hospitality Directions: May 2014

At a glance

Room rate gains accelerate in 2015, as group demand strengthens and recovery gains momentum in lower priced chain-scale segments.

PwC Hospitality Directions: May 2014

At a glance

Room rate gains accelerate in 2015, as group demand strengthens and recovery gains momentum in lower priced chain-scale segments.

Continued recovery in the group segment and rebounding economic momentum supports our expectations of a solid 6.5% RevPAR growth in 2014. In 2015, as supply growth accelerates, occupancy growth is expected to moderate to 1.3%.

However, as many hotels more frequently reach occupancy constraints, pricing power is expected to accelerate, resulting in a solid 5.1% growth in average daily room rates.