NEW YORK The industry is looking better than previously anticipated, according to PricewaterhouseCoopers, which raised its RevPAR estimates for 2000 to 5.6% up from 3.9%, its previous estimate.
In 2001, PwC predicts RevPAR growth will slow to 3.5%, a revised forecast from a previous estimate of 2.8%.
Occupancy estimates have also been increased, to 63.9% from the prior 63.2% estimate. According to Bjorn Hanson, chief of PwC s hospitality and leisure practice, a slower demand growth is anticipated for the second half of the year, but it will be countered by a reduction in new construction.
Overall, this healthier outlook for the industry is indicative of the strong economy. The U.S. GDP is now forecast to increase by 5.1% in 2000. (8/21/00)