US hotel sector gains boost from economy

The hotel sector has been boosted by an 'improving economic backdrop' in 2013, with properties in London recovering well after a sluggish start to the year, and those in the Provinces seeing a remarkable recovery with continuously strong demand, according to a recent analysis by PwC.

"Despite ADR levels still reflecting continuing consumer and corporate price sensitivity, it's a very positive story," Liz Hall, head of hospitality and leisure research at PwC, told Big Hospitality. "Continued economic recovery should mean sustained and enhanced prospects for hoteliers in 2014."

Despite this, PwC warns that the environement may yet pose challenges to hotel operators with consumer spending expected to remain constrained until 2015. New supply remains relatively high, especially in London, and improved trading will encourage more development and competition in the sector.