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TRENDS| Modest RevPAR increase in 2010 forecasted

An updated US lodging forecast that reflects the expected resumption of growth in the US economy in the second half of 2009.








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While occupancy levels and average daily rates (ADR) in the second half of 2009 are expected to remain below last year's levels, resulting in a 15.7 percent decrease in room revenue per available room (RevPAR) in 2009, PricewaterhouseCoopers expects that RevPAR will post modest growth in 2010.






PricewaterhouseCoopers' current lodging forecast reflects updated economic outlooks. After consecutive, substantial declines in real gross domestic product (GDP) in the fourth quarter of 2008 and first quarter of 2009, the contraction of GDP is expected to moderate in the second quarter and to resume growth in the third quarter of 2009. By the second quarter of 2010, the US economy is forecast to grow at an above-trend growth rate.

According to PricewaterhouseCoopers' current lodging forecast, lodging demand in the third and fourth quarters of 2009 is forecast to be 6.4 percent and 1.2 percent below last year's levels, respectively, resulting in an annual decrease of 6.2 percent in 2009. 


source | PricewaterhouseCoopers LLP (PwC)