PwC Hospitality Directions US: May 2018

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Compelling economic fundamentals, combined with an increase in commercial transient demand, suggests continued momentum into 
2019.

Following a better than expected first quarter, lodging metrics continue to remain positive.

  • First quarter results yielded stronger than expected increases in demand for many hotel companies, as well as slightly stronger rate growth, driven primarily by an increase in commercial transient travelers.
  • Year-over-year for the first quarter, RevPAR increased across the transient segment nationally, led by rate growth. As hotels continue to feel the pressure from rising wages, insurance costs and other expenses, the components of RevPAR growth become more important.
  • With occupancy levels at record levels, an expected uptick in commercial transient demand midweek should bode well for stronger increases in room rates.
  • Looking ahead to 2019, there is an expectation of gradual strengthening in rate growth as we move through the year.

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
Email

Eric Shin
Consumer Markets Tax Leader, PwC US
Tel: +1 (646) 471 0902
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Ron Kinghorn
Consumer Markets Advisory Leader, PwC US
Tel: +1 (617) 530 5938
Email

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