PwC Hospitality Directions: Q3 2013

November 2013
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PwC Hospitality Directions: Q3 2013

At a glance

The US Lodging sector recovery continues, driving fewer vacancies and higher rates, particularly among hotels in higher priced segments.

Occupancy levels at hotels in higher-priced segments are ahead of prior peak levels, real RevPAR is above its long-term average, and supply growth is slow. The federal-government shutdown disrupted lodging demand in specific markets but the broader recovery in demand continues and ADR levels are moving higher.

Barring a fiscal policy mishap that upsets the broader economic recovery, we anticipate revenue per available room (RevPAR) growth of 5.5% and 5.9% in 2013 and 2014, respectively – only slightly below our expectations at the start of the year. Construction activity has resumed, but is still at low levels and supply growth is slow.