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U.S. Room Rates Expected to RiseJULY 16, 2004 -- Negotiated U.S. room rates are expected to rise 3.5 percent in 2005, according to recently released projections by PricewaterhouseCoopers. PwC also said that average negotiated rates for 2004, which were determined in late 2003, rose approximately 1.9 percent, compared with the prior year. By contrast, average daily U.S. rates—which include corporate, consortia, negotiated and rack rates—this year are expected to go up 3 percent. PwC's 2005 estimate—that negotiated rates will rise 3.5 percent—reflects analysts' expectation that occupancy and revenues will continue to improve further through 2004. This change is in contrast to previous years when coporate negotiators where able to obtain minimal increases even with declining bookings. Main Press Page |
