A Change in Forecasts for Occupancy and Room Rates for 2006
Jackie Binion | 19 October 2006 |
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Despite previous predictions, Pricewaterhouse Coopers‘ latest forecast for the U.S. lodging industry points up. Hotels and resorts can expect an occupancy increase up to 64.2 percent in 2006. This is the highest rate the industry has experienced since 1996, and average daily rates can be expected to increase by 6.9%. All these figures point to growth in RevPAR (revenue per available room) of 8.7 percent.
“The lodging industry continues to benefit from a surprisingly slow rate of supply growth for this phase of the cycle, and a robust economy that, despite higher energy prices, is supporting growth in personal consumption expenditures,” says Bjorn Hanson, Ph.D. and principal, Hospitality and Leisure practice, PricewaterhouseCoopers. “At the same time, inflationary pressures allow hoteliers to exercise double-digit increases in room rates in many lodging markets.”
Read more about Pricewaterhouse’s forecast in the article, “PricewaterhouseCoopers Forecasts RevPAR Growth of 8.7 Percent in 2006“.
Also, check out predictions for 2007 by reading “Budgeting For 2007? Hotel Rooms Will Be Easier, But Not Easy, To Find”.
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