Pricing Guys... Pricing...

In the face of a still-uncertain economic environment, the outlook for improved pricing in the lodging sector reflects the ongoing recovery of business travel, as well as gains in corporate events and other group business. As a result, lodging demand in 2012 is expected to increase 1.8 percent, which combined with restrained supply growth of 0.5 percent, is expected to boost occupancy levels to 60.9 percent, the highest since 2007. Increased confidence from occupancy gains, particularly in the higher-priced segments of the industry, is expected to allow hotels to achieve valuable increases in room rates. As a result, ADR is expected to increase by 5.1 percent in 2012, driving a RevPAR increase of 6.5 percent.

"It will have been a five-year detour, but continued recovery in 2012 is expected to lift industry RevPAR very close to its 2007 peak," said Scott D. Berman, principal and U.S. industry leader, hospitality & leisure, PwC. "The steepest portion of the demand recovery is behind us with operators' focus on room rate becoming increasingly more important."

A full copy of PwC's US Lodging Forecast can be accessed by visiting:http://www.pwc.com/us/en/asset-management/hospitality-leisure/publications/index.jhtml