Highest occupancy levels in 20 years, US hotel rates may go up

The demand for hotel rooms in the US is high; occupancy rates in 2015 are forecast to be the highest in two decades. According to PwC, this may lead to hotel room rate increases.

Five years after hotel room rates in the US went down fast, the opposite may happen now. In 2015, hotel occupancy is forecast to reach 64.8% — the highest in 20 years.

Using data from Macroeconomic Advisors and Smith Travel Research, PwC US foresees that, resulting from high demand, average daily rates are projected to increase 5.7% in 2015. This will be the highest increase since 2007, the year the recession kicked in. According to PwC, the demand for hotel rooms may provide hotels with “more confidence to push for higher room rates”.

As hotel rates for higher-priced is expected to go up, lower-priced and economy hotels are likely to become more popular.

Further reading on skilift.com