PwC's quarterly Hospitality Directions Report is a near-term outlook for the U.S. lodging sector, commonly used by industry decision-makers and stakeholders to better understand the impact of policy and other macro-environmental factors on the sector's operating performance. Our outlook includes metrics for the overall sector as well as for the chain scales.

Here is a quick summary of its findings:

  • Third quarter lodging fundamentals came in below the expectations of many, with RevPar growth of 1.7 percent year-over-year, led by rate growth of 2.1 percent.
  • The industry also saw third quarter lodging supply growth (1.9 percent) outpace demand (1.6 percent), resulting in occupancy decreasing 0.4 percent.
  • Demand in the Top 25 markets decreased year-over-year with a portion of this decline attributable to last year's hurricane season affecting markets like Houston and Orlando.
  • As we head towards 2019, economic indicators appear to support continued industry growth, given high consumer spending supported by rising disposable income, employment and household net worth.
Source: PwCSource: PwC
Source: PwC