Planners told US hotel industry remains seller’s market
The US hotel industry remains a seller’s market for meeting planners sometimes hard-pressed to find group space, according to PricewaterhouseCoopers in its annual hotel industry report.
The number of 2007 room starts was above the company’s long-term average for the second straight year. But US hotel occupancy last October was around 65%, which is almost what it was a year ago.
“Despite how good the hotel industry feels, growth is still below the long-term trend,” said Bjorn Hanson, principal of PricewaterhouseCoopers.
Envisioning both good and bad news, Mr Hanson said hotel availability will ease somewhat but hotels will continue to charge higher rates.
Suppliers are also increasingly tacking on surcharges. Hotels may even start charging room service fees.
Mr Hanson recommended planners look at second-and-third-tier destinations.
“The hurricanes in 2005 really had a dramatic effect on both supply and demand dynamics by putting a large number of guest rooms out of service,” he said.
He said the good news is that hotel lodging construction is returning to historical high rates.
Report by David Wilkening
David
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