While most of the U.S. economy is still slowly recovering from the recession, our industry is looking surprisingly good for the first quarter of 2014 and according to PricewaterhouseCoopers, LLP (PwC), 2014 and 2015 are looking good for our industry as well! PWC, “concentrates on 16 key industries (including hospitality) and provides targeted services that include — but are not limited to — human resources, deals, forensics, and consulting services.” This lodging outlook has been taken from a combination of, “recent hotel performance…and a macroeconomic environment that is expected to improve.” Powered mainly by group sales, the first quarter of 2014 outperformed expectations in the lodging industry. Here are a few things we can expect to see in 2014 and 2015:
2014
- RevPAR growth of 6.5%, with stronger occupancy growth than previously expected
- Demand growth of 3.1% with group demand picking up pace significantly
- Accelerating recovery in lower priced chain-scale segments
2015
- RevPAR growth of 6.4% driven primarily by rate growth
- Increasing supply growth at 1.3%, continuing to narrow the gap towards long-term of 1.9%
To sum it up, “group demand strengthens, while occupancy and rate growth accelerate in lower priced chain-scale segments.” Group sales for things like company getaways and weddings have increased dramatically over the past decade and will continue to do so; particularly in a tourist state like Colorado.
To read the full lodging outlook by PWC, please check out this PDF.
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