PwC: Below inflationary growth in RevPAR plagues US lodging industry
Third quarter results continued to disappoint - once again coming in below expectations, with RevPAR growth of just 0.7 percent. Lodging supply growth outpaced demand in the quarter, resulting in a 0.1 percent decline in occupancy levels. A slight increase in transient demand failed to off-set declines in the group and contract segments.
In 2020, despite an expected boost to lodging demand from the upcoming presidential election, supply is expected to exceed demand growth, resulting in a minor decrease in occupancy levels. Rising inflation is expected to help support what is still expected to be decelerating ADR growth, resulting in a marginal RevPAR increase of 0.5 percent. Challenges to the above outlook include tempered investor confidence and political uncertainty both domestically and abroad, leading up to the presidential election.
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