PwC recently announced that it has updated its 2021 lodging industry forecast.
In its May Hospitality Directions U.S. report, PwC predicts annual occupancy for US hotels this year to increase to 57.2%, and average daily room rates to increase 8.0%, with resultant RevPAR up 40.1% from last year. RevPAR is expected to finish 2021 at approximately 74% of pre-pandemic levels.
Other trends and highlights include:
Despite increasing vaccinations (35% of the US population was fully vaccinated as of May 11, 2021) and consumer optimism, lodging’s recovery is expected to remain uneven.
In 2022, PwC forecasts the vast majority of temporarily-closed hotels will have reopened and demand growth will continue to improve as the economy strengthens. Occupancy and ADR experience continued growth, resulting in a year-over-year RevPAR rebound of 15.2%, or approximately 85% of pre-pandemic levels.
As hotel owners began to gain confidence that the rollout of vaccines has started to tamp down the virus, April unemployment for the hotel sector improved to 13.8% (from 19.9% in March) compared to the US overall rate increasing slightly to 6.1% (from 6.0% the prior month).
To download a copy of the new report, visit: https://www.pwc.com/us/en/industries/hospitality-leisure/us-hospitality-directions.html