PwC Sees Occupancy Slip In 2002

PricewaterhouseCooper's Hospitality Practice today announced that it expected 2002 occupancy rates for U.S. hotels to be 59.6 percent. This would be slightly lower than the 60.3 percent that PwC had projected for 2001rates for the year. This would be the fourth-lowest occupancy rate in the past 35 years.

Similarly, PwC estimated that room revenues in 2002 would decline by 0.2 percent, following on the 6.7 percent decline that PwC expects the industry to experience this year. The depressed environment for the lodging industry creates negotiating leverage for buyers that will last at least until 2003. Bjorn Hanson, PwC's global practice leader, forecasted occupancy rates in that year to edge up slightly to 60.8 percent, with room revenues growing by a much healthier 5.1 percent.