U.S. hotel industry growth will soon shift from
occupancy-driven to rate-driven, according to a forecast issued on Monday by
PricewaterhouseCoopers' Hospitality & Leisure Practice that projects U.S.
average daily rates to increase by 4.8 percent year over year in 2011. European
hotels, meanwhile, can expect slower growth, according to Deloitte.
U.S. demand this year has recovered to 2007 levels, PwC
said, adding that room supply would increase by 2 percent this year and by only
0.4 percent in 2011, giving hotels the opportunity to boost rates.
The forecast called for a 7.4 percent jump in U.S. revenue
per available room in 2011, its highest increase since 2006.
Europe's hotel recovery, on the other hand, will continue on
a "muted but upward path" in 2011, according to a forecast issued on
Monday by Deloitte. As of September, year-to-date RevPAR had increased by 9.5
percent compared with 2009, but average daily rates were down slightly.
Growth has been stronger outside the Eurozone, with RevPAR
up 11.2 percent as of the end of September. Within the Eurozone, that growth
was only 7.6 percent. Cities in Germany, including Munich, Dusseldorf and
Frankfurt, have seen more than 20 percent growth in RevPAR during that period,
however.