Hotel market recovery on-pace for rest of year

Hotel property recovery should continue to gain steam as the year ends.

The situation for lodging properties around the country should continue to improve as the year winds down, according to PricewaterhouseCoopers. Much of this may be due to price increases and overall property demand, which has grown to levels not expected before.

The revenue per available room rate should rise 7.2 percent by the end of this year, the report noted. In addition, this figure will likely rise by 5.6 percent next year. There was not only the aforementioned improvements in the market, but also the fact that group bookings have increased for the remainder of the year.

Lodging demand should rise by 3 percent by year-end, and this could help vacancy levels reach their lowest point in five years, the report explained. Occupancy may rise the most at high-end hotels as the year closes out.

"PwC continues to have an above-consensus outlook," said Scott Berman, principal and U.S. industry leader, hospitality & leisure for PwC. "With occupancy surpassing recent prior peak levels in the luxury, upper upscale, and upscale segments, the lodging recovery is intact."

According to data from Macroeconomic Advisors, the economic situation should continue its slowdown for the last few months of this year, which would bring total economic growth to less than 2 percent. However, next year should improve by 3 percent.

During July, PwC explained that revenue per available room rose 7.3 percent higher than the same point last year, but total growth for the month was only 4.3 percent. However, this was likely due to the multiple holidays during the month. Less than three weeks into August reported a level of growth nearly three percentage points higher than in July.

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