Hotel Management Expert Talk and Latest Lodging Economic Outlook

There are several hospitality industry trade stories we as a hotel management expert monitor in order to help clients make the best decisions. Where the current economy is headed in terms of hotels and resorts performance is the focus in this blog. The first excerpt is on the 2011 summer results exceeding expectations. According to STR’s COO Brad Garner: – “With much of the nation talking about macroeconomic volatility, a potential double-dip recession, the European Union, and other speed bumps looming over the horizon, it can be helpful to examine the recent reality embedded within the performance data.” – “Fortunately, the recent past for the U.S. hotel industry paints a picture of steady recovery in room demand, which increased 4.2% during June, July and August.” – “In fact, the summer travel season was stronger than we expected. STR’s initial forecast for the three-month period, which we published in April, projected only a 2.5% gain in hotel demand. But as U.S. consumers continued to exercise their summer vacation birthright and corporations, armed with flush balance sheets and healthy profits, increased their travel budgets in earnest, demand for hotel rooms swelled to record-setting levels.” The take away here is that prior months performance is not an aberration, but appears to be a viable recovery. The data behind it should be closely looked at if your hotel management expert is still suggesting caution in the months ahead. Added to this positive outlook, is Choice CEO Steve Joyce and his recent overview of the lodging industry and how it is heating up: – “I don’t know what else they can throw at us but we are really doing really well from the standpoint that we had a good summer and if you look into the fall, the numbers are holding up, and this situation in Europe will get resolved at some point. And I think, if we get some help from the economy, then we’ll do really well. But even if we don’t get help from the economy, we’re going to have two or three good years. Supply increases are going to be, are de minimis, we actually think if our tiers, we’re going to have a decrease in supplies this year and probably next.” Hotel motel management companies and others can read the full article here. Also, be sure to follow our hotel advisors newsletters for more interesting commentary. Are you a hotel or resort investor or owner? How was the summer and the upcoming fall performance at your properties been from a hotel management expert perspective? Any data and comments post for our readers is welcome.