Feb
18

U.S. Hotel Profitability During Recessions

By
– PKF Hospitality Research

When analyzing the financial performance of U.S. hotels, a question we always ask is, “Have we seen this before?” At PKF Hospitality Research (PKF-HR) we have the benefit of reaching into our propriety Trends in the Hotel Industry database that contains detailed revenue, expense, and profit data from 1937 through present. Considering the lack of clarity, and resulting volatility, in the financial markets entering 2009, we thought it would be informative to examine the behavior of U.S. hotels during past periods of economic turmoil.

According to the Bureau of Economic Research, the U.S. has experienced 11 economic recessions since 1937. The duration of these recessions have ranged from 6 to 16 months. Using the Trends database, we measured the change in unit-level hotel financial performance for the years that correspond to the peak-to-trough contraction phase of the designated recessionary period.


ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:

http://www.pkfc.com/en/pkfhome/freestuff/newsletter/currentarticle1.aspx
Be Sociable, Share!
    Categories : National News

    Comments are closed.