financeasianhospitality.com··1 min·For: Owner, GM, Revenue, Investor
PwC Forecasts U.S. Hotel RevPAR Growth to Slow to 3% in 2027
U.S. hotel RevPAR growth is projected to decelerate to 3% in 2027 as operating expenses continue to outpace revenue gains. While luxury properties lead rate growth, rising insurance and labor costs are squeezing bottom-line margins across the industry.
Key Takeaways
- 1RevPAR growth is forecast to slow from 5% in 2026 to 3% in 2027, with supply growth remaining low at 1.2%.
- 2Luxury ADR is projected to rise 6.8%, contrasting with a 0.1% decline in the economy segment.
- 3Operating costs have risen four times faster than revenue, led by a 111% surge in insurance expenses since 2019.
Source: asianhospitality.com
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