With developers, lenders, and investors wary about lodging performance for 2002, PricewaterhouseCoopers expects 6% of hotel projects scheduled for completion in 2002 and 2003 to be cancelled or deferred. Room completions for 2002 are now estimated to be 81,800 or 28% below 2001 completions. Room completions for 2003 will decline to 77,000, or 6% from 2002 levels. Room completions in 2001 will decline 18.5% below the level expected in PricewaterhouseCoopers' July 2001 Lodging Forecast, and 16.2% in 2003 below the level expected in July.

Combined with higher numbers of room removals in 2002 and 2003, net supply growth for 2002 is now estimated at 1.5%.

"This forecast is for room completions to be at the lowest level since 1995," said Bjorn Hanson, Ph.D., global industry leader, PricewaterhouseCoopers.