NEW YORK Lodging room demand will slow to lower levels than originally anticipated because of the possibility of a continued “growth recession,” according to PricewaterhouseCoopers Hospitality & Leisure practice. However, lodging demand growth will begin to rebound in the second half of 2001.
PwC forecasts a 0.5 point decline in occupancy in 2001 with RevPAR growth slowing to 3.1% in 2001, from 5.5% in 2000. RevPAR growth is projected to increase 4.3% in 2002 as the economy recovers some of its momentum. (1/18/01)