US Hotels Can Expect a Cloudy Forecast for 2017


cloudy hotelHotel revenue growth has slowed significantly in 2016, and sources said they expect that to continue through 2017 as occupancy flatlines.

But even if performance might not be as positive as it has been, hoteliers shouldn’t start banking on a recession, sources said.

“I don’t think we’re in for a totally systemwide panic like we’re in a recession,” said Paul Breslin, managing director for Horwath HTL. “I don’t think this is that kind of cycle. I think we’re in a downward trend or softening of a strong cycle. The fundamentals are still strong.”

Bobby Bowers, SVP of operations for STR, Hotel News Now’s parent company, said the industry is likely headed for an extended period of slow but steady growth in large part because there were no wild swings following the 2009 recession.

“2009 (revenue per available room) was down 17%, which was far and away the biggest drop we’ve ever tracked,” Bowers said. “And we haven’t really had a huge growth spurt since then. It makes you kind of think that if you had this big decline and you didn’t really have any huge gains in terms of snap back, then we’re probably in for an extended run of growth around 2% to 4%, which is not great but it’s not negative.”


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