10 November 2021, Virtual
London, UK - November 2021
London, UK - December 2021
PKF predicts fifth-worst decline in industry history
The hotel industry faces its fifth worst drop in revenues in modern lodging industry history, according to a PKF Hospitality Research forecast update released this week.
PKF expects revenue per available room (RevPAR) to fall 7.8% next year, fifth sharpest drop since 1930 which includes 2001's drop of 10.3%.
The report said RevPAR was unlikely to rise again until Q2 2010 following seven consecutive quarters of decline.
PKF said a 2.9% increase in supply in 2009 compared to 2008 would be worsened by the economic downturn, contributing to a 5.3% drop in occupancy.
Mark Woodworth, PKF Hospitality Research president, said: "The combination of above-average net increases of supply occurring simultaneously with dramatic declines in demand is something we have not seen in recent industry recessions. This is what makes this downturn so severe."
PKF predicts a 2.7% decline in average daily rate in 2009, despite the increases seen up until October this year.