According to PricewaterhouseCoopers
, along with Torto Wheaton Research, approximately 136,500 rooms began construction in 2006, a year-over-year increase of 64.2 percent. That marks the highest start since 1994, when the new hotel construction increased by 67.2 percent.
The room starts increase of 2006 reflects positive industry fundamentals including the largest revenue per available room (RevPAR) growth since 1981 of 8.5 percent in 2005 and a robust growth of 7.7 percent in 2006. PwC forecasts a 5.6 percent RevPAR growth in 2007 as supply growth slightly exceeds demand growth and average daily rate (ADR) growth slows.
PricewaterhouseCoopers forecasts supply growth of 1.6 percent in 2007 and 2.3 percent in 2008, the highest two year levels since 2001.