PwC tempers U.S. hotel forecast as demand slows
The company softened its projections for U.S. hotel occupancy in 2023 and 2024 amid economic concerns and an uncertain outlook for corporate travel
PwC projects full-year 2023 occupancy for U.S. hotels to reach 63 percent, up 0.7 percentage points year over year, according to its latest Hospitality Directions outlook. This projection is slightly below PwC's prior forecast of 63.4 percent, issued in May 2023, and reflects declining occupancy numbers during the last half of 2023.
Key takeaways
- Occupancy levels have declined in each of the past seven months, relative to comparable 2022 levels, and are expected to continue to be down during the remainder of this year and through at least the first quarter of 2024, according to PwC;
- ADR will remain the driver for moderating" revenue per available room gains, according to PwC;
- Full-year ADR in 2023 now is expected to be $155.92, up 4.5 percent year over year. The revised outlook represents an increase in PwC's previous projection of a 4.1 percent increase to $155.21. PwC now projects full-year 2023 RevPAR to be $98.25, up 5.2 percent year over year, but slightly below the company's previous forecast of $98.42.
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