PwC: Occupancy to reach 20-year high in 2015

Occupancy and other indicators in 2014 and 2015 are expected to show robust performance, according to new projections from PwC and STR. An updated lodging forecast released by PwC US anticipates stronger occupancy gains in 2014, setting the stage for 2015, during which PwC US anticipates the highest occupancy levels in 20 years. As the economy rebounded from a weather-related slowdown in the first quarter of 2014, travel activity picked up significantly in the second quarter, resulting in better than expected occupancy performance, and average daily rate results that were only slightly less than anticipated. While transient travel – both commercial and leisure – continues to show steady gains, hoteliers are reporting strong trends in the group segment, which still has room to recover to peak levels.

This increased momentum of demand growth in the second quarter and a robust summer travel season also resulted in public lodging companies increasing their guidance on revenue per available room growth for the year, according to PwC. This, coupled with continued growth in group demand and steady above-trend economic momentum, supports PwC's expectation of a

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