Magazine article Mortgage Banking

PwC: Sluggish Economy Drags Down Lodging Recovery

Magazine article Mortgage Banking

PwC: Sluggish Economy Drags Down Lodging Recovery

Article excerpt

PricewaterhouseCoopers U.S. (PwC), New York, revised downward its expectations on revenue per available room (Rev PAR) growth to 7.5 percent this year and 6.2 percent in 2012. The numbers dropped from 7.6 percent and 7 percent, respectively.

PwC said in its updated U.S. Lodging Forecast that a revised forecast from Macroeconomic Advisers LLC, St. Louis, changed its outlook on the lodging recovery. While PwC expects lodging demand to continue, it said the weaker macroeconomic outlook tempers the recovery.

"Current uncertainty about the future economic environment, both at home and abroad, is expected to create a drag on Rev PAR recovery during the second half of this year and into next," said Scott Berman, principal and U.S. industry leader of hospitality and leisure for PwC. "We continue to monitor rapidly changing econometric data and evaluate monthly lodging industry metrics, which continue to show wide fluctuations, based on geography and chain scale."

Macroeconomic Advisers' outlook for gross domestic product (GDP) growth lowered from 3.2 percent to 1.6 percent this year and from 3. …

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