Strong Growth in Group Demand Drives Lodging Recovery in Q1
The lodging industry beat expectations in the first quarter, according to PwC US, despite a weak U.S. economy and thanks in part to strengthened recovery in group demand. In its new forecast, the consulting firm is predicting an overall growth of 6.5 percent in revenue per available room for 2014. Occupancy growth is expected to slow to 1.3 percent in 2015, but relatively limited guest-room supply is expected to push the average daily rate up by 5.1 percent in 2015, for a 6.4 percent additional growth in RevPAR. “With the recovery in group demand accelerating,” said PwC US principal and industry leader Scott D. Berman, “hotel operators at the higher price points are poised to benefit.” Lower-priced segments should benefit, too, the report added, as RevPAR recovery is now affecting those segments as well.