Plateau in Hotels a Good News/Bad News Story

Daniel Lesser | July 21, 2016

by Daniel Lesser NEW YORK CITY—Primary US lodging metrics during the first half of 2016 reveal that after five consecutive years of above average increases in occupancy, average daily rate and profits, hotel performance appears to be reaching a plateau. While growth is clearly decelerating, there is also no evidence of a decline in US hotel fundamentals indicating that the current cycle has ended. The US hotel industry is currently a good news / bad news story. The good news is that: The US economy is demonstrating resilience in spite of global economic uncertainty; The US central bank is holding off on raising short-term inter...