U.S. hotel occupancy rates will reach a 20-year high in 2015 as higher company travel spending boosts group reservations while room supply stays fairly constant, consultant PricewaterhouseCoopers (PwC) said Monday.
Hotel occupancy will advance almost 2 percentage points this year, to 64.1%, and will rise to 64.8% in 2015. Revenue per available room, which factors in both occupancy and room rates, will increase 7.6% and 6.9% in 2014 and 2015, respectively, while room supply will rise just 2.6% during this year and next year combined, according to PwC.
"The strengthening of the group segment thus far in 2014 and a strong summer travel season across all price points is encouraging for future occupancy levels and continued industry growth," said PwC principal Scott D. Berman in today's statement. "We will be closely monitoring the industry's third quarter results to evaluate any change in momentum." Follow Danny King on Twitter @dktravelweekly.