US hotels recovery not likely until 2003

HOTELS in the USA cannot expect to recover until 2003, says the latest hotel industry briefing from consultant PricewaterhouseCoopers (PWC).

PWC said the time it would take the US hotel industry would depend on the length of the Afghanistan war and any future attacks on the USA.

According to the study, occupancy will fall this year to 59.6%, the lowest since 1971, and will not increase again until 2003 when it will reach 60.8%, slightly higher than this year's rate.

Revenue per available room (revpar) fares just as poorly, with average levels not expecting to return to 2000 levels of around $55 (£38) until the third quarter of 2003.

In the fourth quarter of last year revpar was down by a total of 14.7%. The drop was greatest in November, falling by 15.1%.

December figures started to recover, but still showed an 11.3% decline on the previous year.

PWC predicts revpar levels in the first three months of this year will be down by 10.4%.