{"id":1004102785,"date":"2014-08-26T07:23:54","date_gmt":"2014-08-26T15:23:54","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004102785"},"modified":"2022-12-09T00:03:51","modified_gmt":"2022-12-09T08:03:51","slug":"hotel-occupancy-on-track-to-hit-20-year-high-pwc","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/hotel-occupancy-on-track-to-hit-20-year-high-pwc\/","title":{"rendered":"Hotel Occupancy on Track to Hit 20-Year High: PwC"},"content":{"rendered":"<p><i>By Keith Loria, Contributing Editor<\/i><\/p>\n<p>The hospitality industry is on track to hit its highest occupancy levels in 20 years in 2015, thanks in part to strong gains this year, according to a report from PricewaterhouseCoopers L.L.P.<\/p>\n<p>Once the economy rebounded from a weather-related slowdown in the first quarter of 2014, travel activity picked up significantly in the second quarter, resulting in better-than-expected occupancy performance, the report explains.<\/p>\n<div id=\"attachment_1004102789\" style=\"width: 125px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/08\/Scott-Berman_PwC.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004102789\" data-attachment-id=\"1004102789\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/hotel-occupancy-on-track-to-hit-20-year-high-pwc\/scott-berman_pwc\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/08\/Scott-Berman_PwC.jpg\" data-orig-size=\"115,157\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Kate Franich&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1408978477&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"Scott Berman_PwC\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Scott Berman&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/08\/Scott-Berman_PwC.jpg?w=115\" class=\"size-full wp-image-1004102789\" alt=\"Scott Berman\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/08\/Scott-Berman_PwC.jpg\" width=\"115\" height=\"157\" \/><\/a><p id=\"caption-attachment-1004102789\" class=\"wp-caption-text\">Scott Berman<\/p><\/div>\n<p>\u201cHotel demand in the United States is as strong as it\u2019s ever been,\u201d Scott Berman, principal and PwC\u2019s U.S. industry leader for hospitality &amp; leisure, told <i>Commercial Property Executive<\/i>. \u201cAfter a very uneven first quarter, there was a lot of uncertainty. But the summer has not only helped us catch up, but we exceeded where everyone thought we would be.\u201d<\/p>\n<p>Transient travel in both commercial and leisure segments continues to increase, and hoteliers are reporting strong growth in the group segment, which still has room to recover to peak levels.<\/p>\n<p>\u201cLeisure travel both domestically and internationally signifies the rebound of group business,\u201d Berman said. \u201cThis was a segment of the market that the hotel industry has been chasing since the recession.\u201d<\/p>\n<p>The combination of increasing group demand and steady above-trend economic momentum will push up RevPAR a solid 7.6 percent in 2014, PwC estimates.<\/p>\n<p>\u201cLeisure, group and corporate are all behaving favorably from an operative and room rate perspective,\u201d Berman said. \u201cWhen that happens, you\u2019re going to see very strong RevPAR performance.\u201d<\/p>\n<p>For the rest of 2014, PwC expects lodging demand to increase 4.0 percent, which, combined with still-restrained supply growth of 1.0 percent, is anticipated to boost occupancy levels to 64.1 percent.<\/p>\n<p>Occupancy levels in the lower-priced chain scale segments are expected to approach or exceed prior peak levels, as price-driven compression from higher-priced hotels drives demand to lower priced hotels.<\/p>\n<p>\u201cWhat\u2019s been even more surprising, from my perspective, is now we\u2019re starting to see secondary and tertiary markets do better, and that\u2019s where more economy and flex service hotel properties reside,\u201d Berman said. \u201cThat is indicative of a strengthening domestic economy.\u201d<\/p>\n<p>Berman said that PwC expects accelerating supply growth of 1.6 percent in 2015, due to construction of new hotels, with supply growth in the higher-priced chain scale segments outpacing growth in the lower-priced segments.<\/p>\n<p>\u201cWhile we\u2019re starting to see more hotel construction starts, it\u2019s really still just at 1 percent or less growth of supply,\u201d Berman said. \u201cA supply that\u2019s muted, combined with strong demand and a robust economy, is the formula for continuing hospitality industry growth measured in RevPAR percentage.\u201d<\/p>\n<p>Of the top 25 markets, the only one that hasn\u2019t seen consistent growth is Washington, D.C., which Berman said is because the capital experienced a softer landing during the recession.<\/p>\n<p>The updated estimates from PwC are based on a quarterly econometric analysis of the lodging sector, using an updated forecast released by Macroeconomic Advisers, L.L.C. in August and historical statistics supplied by Smith Travel Research and other data providers.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The hospitality industry is on track to hit its highest occupancy levels in 20 years in 2015, according to a report from PricewaterhouseCoopers L.L.P.<\/p>\n","protected":false},"author":445,"featured_media":1004102789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21751,21742,1615],"tags":[],"class_list":["post-1004102785","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hotel","category-latest","category-washington-dc"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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