November 16, 2018
Hospitality industry executives look ahead to 2019
There are headwinds ahead for some hotel brand companies and real estate investment trusts, but the overall tone on calls in regards to next year was positive.Read more
First quarter results yielded stronger than expected increases in demand for many hotel companies, as well as slightly stronger rate growth, driven primarily by an increase in commercial transient travelers, according to new PwC data.
Year-over-year for the first quarter, RevPAR increased across the transient segment nationally, led by rate growth. As hotels continue to feel the pressure from rising wages, insurance costs and other expenses, the components of RevPAR growth become more important.
With occupancy levels at record levels, an expected uptick in commercial transient demand midweek should bode well for stronger increases in room rates.
Looking ahead to 2019, there is an expectation of gradual strengthening in rate growth as we move through the year.
Get the full report at PwC (PDF 135 KB)
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