Third quarter results continued to disappoint - once again coming in below expectations, with RevPAR growth of just 0.7 percent. Lodging supply growth outpaced demand in the quarter, resulting in a 0.1 percent decline in occupancy levels. A slight increase in transient demand failed to off-set declines in the group and contract segments. While RevPAR increased during the quarter, it was the lowest year-over-year growth since the beginning of the US lodging industry’s recovery from the Great Recession, and the only quarter in the current lodging cycle with a RevPAR increase below 1.0 percent.
“Challenges to the outlook include tempered investor confidence and political uncertainty both domestically and abroad, leading up to the presidential election.”
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
US Hospitality & Leisure Practice Leader, PwC US
US Hospitality & Leisure Managing Director, PwC US