PricewaterhouseCoopers Hospitality & Leisure Practice Predicts U.S. Lodging Industry Rate of RevPAR Growth Will Reach Lowest Point in Current Growth Cycle in First Quarter 2000

The 12-month 1999 lodging industry rate of RevPAR growth will be 3.1 percent, according to PricewaterhouseCoopers. Then during 2000, RevPAR will grow at a rate of 3.0 percent. In 2001 RevPAR's rate of growth will rebound to 3.7 percent.

"After peaking in 1996 at a rate of growth of 6.1 percent-Smith Travel Research, the rate of RevPAR growth has been steadily declining as the rate of room supply growth has increased. In 2001, room supply growth will slow, the rate of demand growth will remain robust, and RevPAR's rate of growth will increase," said Bjorn Hanson, Ph.D., global leader PricewaterhouseCoopers Hospitality & Leisure Practice.

PricewaterhouseCoopers has accurately predicted turning points in the past three cycles. In July 1991, PricewaterhouseCoopers predicted a return to profitability for the industry in 1993, and average daily room rates surpassing inflation. In April 1996, PricewaterhouseCoopers issued an early alert that there would be an occupancy decline in 1997. And in September 1997, PricewaterhouseCoopers said room starts would decline in 1998.

PricewaterhouseCoopers Hospitality & Leisure Practice-with its staff of Ph.D. economists and group of specialized consultants-has established itself as the industry's leader in providing reliable lodging forecasts that offer true industry-wide samples based on solid econometric models.

The firm's research models have recently been refined and enhanced to improve the estimation of future room starts, to enable more precise estimation of the interactions between lodging statistics and the macroeconomy, and to provide reliable estimates of future lodging statistics of the U.S. at the industry segment, regional, and local market level.

PricewaterhouseCoopers Hospitality & Leisure Practice provides services including management, technology, human resources and financial consulting in North America, Europe, the Middle East, Africa and Asia. The practice recently formed a partnership with Smith Travel Research.

PricewaterhouseCoopers (www.pwcglobal.com) is the world's leading professional services organization. Drawing on the knowledge and skills of 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance. PricewaterhouseCoopers refers to the US firm of PricewaterhouseCoopers LLP and other members of the worldwide PricewaterhouseCoopers organization.