Luxury segment driving growth in U.S. hotel market
NEW YORK ? Luxury hotels will lead a U.S. hotel market where demand growth will moderate slightly this year, analysts said Monday.
PricewaterhouseCoopers (PwC) maintained its January 2013 forecast of a 5.9% increase in revenue per available room (RevPAR), though PwC tapered its growth forecast for average daily to 4.4% from 4.8%, while increasing its occupancy forecast to 62.2%.
Hotel RevPAR rose 6.8% last year on a 61.4% occupancy rate.
As for 2014, demand will accelerate slightly as RevPAR will rise 6.2% primarily on a 5.1% increase in average daily rate.
“Hotels in higher-priced segments are achieving occupancy levels above the prior peak,? said Scott Berman, PwC’s principal and U.S. industry leader for hospitality and leisure. ?Looking ahead, the foundation is in place for solid rate gains as travel demand grows and hotel operators adjust strategies accordingly.”
Smith Travel Research had a similar forecast. Chairman Randell Smith, who was presenting his firm?s findings at the NYU Hospitality Conference in New York on Monday, predicted 5.8% RevPAR growth rates for both 2013 and 2014.
Luxury hotel RevPAR will jump 8.8% this year, while midscale will advance 2.7%, representing the fastest- and slowest-growing sectors, respectively.
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Source: Danny King (2013). Luxury segment driving growth in U.S. hotel market, Travel Weekly http://www.travelweekly.com/Travel-News/Hotel-News/Luxury-segment-driving-growth-in-US-hotel-market/?published Jun 03, 2013. Viewed Jun 06, 2013.