This week the focus of our hotel advisor update is on the projections for overnight lodging revenues for the upcoming holidays and the remainder of the 2011 year. In addition, we want to call attention to recent statistics that still point to a recovery in the hotel sector, albeit to be tempered with caution in our opinion. In our view and coupled with other insight on the lodging industry: • Fourth quarter results are indicative of any hope for hotel sector investors to regain losses sustained this year or last. Fortunately, the final three months of 2011 suggests that RevPAR (revenue-per-available-room) is on target to rise over the same quarter in 2010. At a recent hotel motel management company conference, the Chairman of FelCor, a major and long time lodging trust, said the STR projections of a 7.8% increase for this year should hold true. PKF Consulting’s Hospitality Research is predicting a similar increase in RevPAR as well. • Most of this increase in our view will be attributed to the ability of hotels and resorts to hold pricing steady and in many cases increase rates as opposed to any discounts over the upcoming holidays, especially through the OTAs (online travel agencies). This is bad news for consumers but welcome relief for hotel real estate investors and owners. • This is supported by another hotel advisor and hotel revenue management specialist that says dynamic pricing or allocating price points versus demand at certain times will achieve it. Many operators have been tweaking their business plan for a hotel rate increase in recent months given the positive news on the lodging sector. Are you a hotel investment group, hotel advisor or operator of hotels? If so, where do you see the next 3 months heading in terms of hotel rates and occupancy? Please share your commentary with our readers.
Perry Group
Hotel & Restaurant Experts For The Hospitality Industry
