U.S. Hotel Interest Coverage / Robert Mandelbaum and John B. Corgel, Ph.D.

Robert Mandelbaum | August 20, 2019

By Robert Mandelbaum and John B. Corgel, Ph.D. According to the March 2019 edition of CBRE’s Hotel Horizons® forecast report, RevPAR growth for the U.S. lodging industry will be limited to under 2.5 percent through 2020.  Further, CBRE is projecting a 0.6 percent decline in RevPAR for 2021 as CBRE expects the economy to slow down during the year.  The combination of modest increases in revenue and rising operating expenses (especially labor) make hotel owners and operators nervous about their ability to enjoy profit growth the next few years. While the profit growth story is concerning, it should it should be noted that current GOP...