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.
Join Mike McGinley of Live Oak Bank along with Evan Weiss and Daniel Lesser of LW Hospitality Advisors as they kick off the Hotel Industry Insights Webinar Series and cover all things appraisals.
Much has been written about brand proliferation in the hotel industry over the last several years, but the explosive increase of hotel brands in recent years has reached an astounding level. This staggering trend of exponential growth appears to have no end in sight.
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?
The good news is that LIC’s long-term development boom will continue an upward trajectory. It just will not be as rapid a transformation that Amazon moving into the area would have ushered in.
Last year was a record-breaking one for the United States hotel industry in terms of key performance metrics as well as supply and demand.
Economic growth, record low unemployment, relative low inflation, rising government spending, and tax reform have combined to produce one of the longest periods of sustained growth ever in the United States.