PwC Hospitality Directions US: November 2018

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Waning fiscal stimulus, and resultant deceleration in GDP growth, expected to keep a lid on RevPAR increases by the latter half of 2019.

Third quarter lodging fundamentals came in below the expectations of many, with RevPar growth of 1.7 percent year-over-year, led by rate growth of 2.1 percent.

  • The industry also saw third quarter lodging supply growth (1.9 percent) outpace demand (1.6 percent), resulting in occupancy decreasing 0.4 percent.
  • Demand in the Top 25 markets decreased year-over-year with a portion of this decline attributable to last year’s hurricane season affecting markets like Houston and Orlando.
  • As we head towards 2019, economic indicators appear to support continued industry growth, given high consumer spending supported by rising disposable income, employment and household net worth.

About Hospitality Directions

PwC Hospitality Directions US is a near-term outlook for the U.S. lodging sector, commonly used by industry decision-makers and stakeholders to better understand the impact of policy and other macro-environmental factors on the sector’s operating performance. Our outlook includes metrics for the overall sector as well as for the chain scales, and is used by our clients for

  • strategic planning and capital
  • allocation purposes
  • demand and supply
  • occupancy 
  • average daily rate 
  • revenue per available room 

Contact us

Steven J. Barr
Consumer Markets Leader, PwC US
Tel: +1 (415) 498 5190

Eric Shin
Consumer Markets Tax Leader, PwC US
Tel: +1 (646) 471 0902

Ron Kinghorn
Consumer Markets Advisory Leader, PwC US
Tel: +1 (617) 530 5938

Melissa Palmer
US Consumer Markets Assurance Leader, PwC US
Tel: +1 (617) 530 4473

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