The most recent version of PwC's Hospitality Directions U.S.
lodging outlook pegs 2018's average daily rate, occupancy and demand growth at
slightly higher levels than the last outlook, issued in September.
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PwC's previous 2018 forecast
ADR is now forecast to grow 2.2 percent, up from
the 2.1 percent previously predicted. Occupancy is improved from -0.1 percent
to 0.2 percent. Demand is projected to grow to 2.1 percent instead of to 1.8
percent, which now puts it ahead of the 1.9 percent projected supply growth.
PwC attributes the improvements to strong economic momentum and a "more
tangible" prospect for tax policy reform. Additionally, hurricanes Irma
and Harvey have boosted hotels in the southern U.S., as they are providing
lodging to displaced residents and aid workers. That recovery effort is
expected to continue into 2018 and further bolster lodging results.