NEW YORK PricewaterhouseCoopers latest U.S. Lodging Industry Forecast calls for a dramatic increase in RevPAR growth in 2002 to 4.3%, compared with its forecast RevPAR growth of 2.8% in 2001 the slowest rate of growth since 1992.
The expected recovery is due to the combination of a significant slowdown in supply growth together with an acceleration in demand growth in 2002, as the U.S. economy is expected to recover from its 2001 growth recession.
Lodging industry supply growth slowed from a rate of growth of 3.6% in 1999 to 2.9% in 2000. PricewaterhouseCoopers forecasts this trend will continue with 2.5% growth in 2001, and 2.2% in 2002. In 2003, PricewaterhouseCoopers forecasts supply will grow by 2.1%, the lowest level of supply growth in nine years. Real Average Daily Rate growth in 2002 is expected to accelerate at 3.9% growth, as the economy experiences a slowdown in consumer price inflation. Room occupancy in 2002 is forecast to be 63.2%, up from the forecast of 62.9% for 2001. (5/11/01)