What's more, the professional services/consulting organization, anticipates occupancy will slip to 62.9%, and RevPar will grow by only 2.8%, slightly above the rate of inflation. "Even with the US economy's performance, we believe the lodging industry will experience profit growth in 2001, but that growth of 4.6% to $25 billion will be the smallest since 1992," says Bjorn Hanson of PricewaterhouseCoopers' hospitality and leisure practice. "The industry is currently operating at a substantial premium to break-even occupancy with high profit margins following a decade of restructuring," he adds.
For 2002, the outlook is more sanguine. RevPAR should increase by 4.3% and room demand growth is expected to recover at 2.7%, with average daily rates increasing by 3.9%. Occupancy is forecast to improve just slightly, however, by 0.2%.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
