Hotel Rates Heading Up

It looks as if meeting planners are heading straight into a seller's market, according to the 2005 U.S. Lodging Forecast by PricewaterhouseCoopers. “The balance of power has shifted, especially during higher occupancy periods,” says PWC's Bjorn Hanson, global hospitality industry managing partner, New York City.

This shift applies to not only room rates but also to food and beverage, meeting room charges, and other meeting-related costs. “In many ways, next year will seem more of a challenge in negotiations than 2000,” Hanson says.

The average daily rate is expected to rise 3.7 percent by year's end, to $86.03, up sharply from $83.08 at the end of 2003. ADR growth was essentially flat in 2003, with negative growth the two previous years. Looking ahead, PWC anticipates similar ADR increases in 2005 (3.5 percent) and 2006 (3.4 percent).

Year-end average occupancy rate for 2004 is forecast to climb to 60.6 percent in 2004, up from 59.2 percent last year. Over the next two years, the average occupancy rate is expected to increase to 61.5 percent in 2005 and 62.1 percent in 2006. PWC attributes the increase to a combination of economic growth and moderate expansion (1.3 percent) in hotel room supply.

Luxury properties are the biggest benefactors of the economic recovery: The year-end average occupancy rate is projected to rise 2.8 percent for 2004, with economy properties likely to end the year with the lowest ADR and occupancy increases.

PWC expects revenue per available room to leap 6.3 percent in 2004 — the largest one-year hike since 1984. The hike in RevPAR, a key indicator of hotel profitability, is a sign of recovery for an industry that has experienced negative or flat RevPAR growth over the past three years. PWC projects a RevPAR jump of 5 percent in 2005 and 4.5 percent in 2006.

RSS Share

Want to use this article? Click here for options!
© 2012 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

Search 125,000+ Venues

Search Meeting Space

Find Event Venues with Cvent

The Meeting Planning Blog

Face2Face Latest Posts

Sign Up for Our Free E-Newsletters

Meetings Collaborative

Rate your experience with meeting venues and suppliers.

Facility / Hotel

 
Powered by: Meetings Collaborative
Aega Awards

Latest Webinar

Global Meetings: Risk Management A to Z
February 28 | 2p.m. EST

Organizations take on more risk than usual when booking meetings outside the U.S. Join our expert panelists and learn how to assess your overall risk, write contracts that protect your organization, manage currency exchange rate fluctuations, keep your travelers safe, and much more. View it on-demand now!

VIEW ALL ARCHIVED WEBINARS

Recent Comments

Powered by Disqus

Back to Top

Explore Our Newsletters


Meeting Planner Survival Guide

Whether you're a novice planner or a veteran, this compilation of must-read articles is your meeting planning resource.

Must-See Meeting Files

Visit the MeetingsNet expert-advice site, where we’ve got top meeting pros on camera answering a variety of your questions as well as a collection of educational—and sometimes offbeat—editors’ pick lists — from the top tech tools to the best books for meeting professionals.

Pharma Meeting Management Forum

8th Annual Pharmaceutical Meeting Management Forum
March 25-28, 2012 in Orlando, Fl
Register now!
Learn more about how healthcare reform will affect medical meetings.

Both forums are co-sponsored by Medical Meetings and The Center for Business Intelligence.

Suppliers/
Facilities/CVBs

MeetingsNet makes it easy to find the CVBs, tourist boards, and facilities you need for your next meeting.

Deal Finder

Special offers brought to you by MeetingsNet.

Find A Job

Targeted to all aspects of the hospitality and special events industry.

SMM PORTAL

Your source for Strategic Meetings Management info and intelligence

Facebook   Twitter   LinkedIn   RSS Feed

Inside Current Issue

February 2012 CMI

January 2012

January 2012 FIM

MM January 2012

Jan/Feb 2012 MM

December 2011

December 2011 RCM

December AM

December 2011 AM

Browse Back Issues