More reports by hotel consultants, management executives and real estate brokers suggest that the lodging and hospitality industry is continuing to improve and more rapidly in some U.S. cities. For example, San Francisco is at the top of the list in rebounding since the recession began in 2007 according to one news story. In a separate study, Americans are still travelling but more often by car instead of flying, which suggests overnight lodging stays will be closer to home in many domestic hotel markets. According to this one news story: – “Room rates in San Francisco are also rebounding as hotels dispense with cheaper online travel services in favor of corporate business. Gone, or at least going, are the days when company-paid outings to fancier hotels did not comport with the mood of the times” according to the SF Gate discussion with real estate and hotel consultants groups. A separate study conducted by Expedia Travel found, which can benefit hotel motel management companies and their turnaround focus: – “The economic downturn has not caused consumers to decrease their leisure travel. Forty-six percent of travelers between the ages of 35 and 46 said they travel as usual. Both men and women aged 18 to 34 have also begun taking more trips.” Still, as I reported in The INNsider Update back in November as part of our hospitality consulting group analysis, there are conflicting news reports for advisors, operators and investors. In particular is that a majority of the economic improvements reported in the lodging industry are based on the Top 25 hotel markets, like San Francisco. If a lodging property is in a secondary or tertiary market, such as the outer towns near Atlanta, the occupancy and average room rates have been much slower to improve based on our review of the local data. Are you a hotel owner, operator or REO lender still experiencing cheap rates and low occupancy? Please share what your hotel consultants or managers believe are the reasons so we can report about it for the benefit of our readers here. Or, if you would like a preliminary evaluation of the problem, please submit a request for consultation below.
