The US lodging industry continued to benefit from an outsized improvement in leisure demand through the summer months. As kids headed back to school, individual business travel and group demand that historically replaces summer leisure business post Labor Day has yet to surface, with office re openings pushed later into 2021 or early 2022 as a result of the delta variant of the virus. That said, given the strength of demand during the summer, we expect annual occupancy for US hotels this year to remain consistent with our May 2021 outlook, increasing to 57.1 percent. The bigger story is the significant lift in average daily room rates during the back half of Q2 and Q3; exceeding 2019 (pre-pandemic) levels in each month of Q3. We now expect average daily room rates to increase 19.6 percent for the year, with resultant RevPAR up 55.1 percent, approximately 82 percent of pre-pandemic levels.
"If vaccinations increase and infection rates continue to drop as we close out 2021 and start the new year, demand from individual business travelers and groups will improve, with average daily room rates in Q3 and Q4 2022 expected to surpass comparable 2019 levels."
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