With 121 consecutive months of growth through Q2 2019, the U.S. economy is now in record territory for the longest expansion period in history.
In the age of hotel brand proliferation, new brands sprout almost weekly. This dizzying array of choices doesn’t the make the decision about which flag to fly on a property any easier for hotel developers.
In a rapidly changing world, particularly with respect to digital technological advances, the lodging sector has often been reactive.
Despite GDP indicative of a slowing economy during Q4 2019, the U.S. economic expansion which commenced in June 2009, is soon approaching the longest post-World War II expansion with uninterrupted growth.
While the longer economic growth endures, intuitively the risk of recession rises.
While the longer economic growth endures, intuitively the risk of recession rises. Despite GDP indicative of a slowing economy during Q4 2019, the U.S. economic expansion which commenced in June 2009, is soon approaching the longest post-World War II expansion with uninterrupted growth.
Although the hotel industry has been operating at peak levels for several years, accelerated supply growth, which has been readily absorbed in most markets due to the expanding economy, has contributed to weaker than normal average room rate growth.
Dr. Donna Quadri-Felitti, the Marvin Ashner director and associate professor, School of Hospitality Management at Penn State (and fellow HOTELS blogger), and I recently discussed the notion of an “ideal” hotel school graduate.
Brands continue to add flags to their family of brands to attract customers and get an edge on the competition, but could all of these brands survive a downturn?