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PricewaterhouseCoopers Forecasts Increase in Hotel RoomsJune 28, 2006 By: Erin Sternthal Travel Agent
According to PricewaterhouseCoopers, construction is scheduled for 119,000 new hotel rooms this year, which marks a 45 percent increase over 2005. The bulk of the increase is in upscale and mid-priced hotels without food and beverage. This year will mark the highest level of new hotel room construction since 2000. In 2005, 82,625 new rooms were constructed—a 3.2 percent increase over 2004. According to Bjorn Hanson, Ph.D. and principal of PricewaterhouseCoopers Hospitality and Leisure practice, the increase this year reflects the industry's positive outlook for occupancy, average daily room rate and RevPAR. Yet Hanson says supply will continue to increase less than demand in 2006 and 2007.