Bankers and many Wall Street analysts want to predict the downturn of the hotel industry. We’re battling the perception that the general economy will tank the hotel economy. However, new supply is there and the numbers show a much different story. Annually, hotel room demand has grown in excess of 2% for the past four years nationally so it’s really about reading between the lines of the numbers. The new supply cycle is different than the last due to more select service. Lodging Econometrics doesn’t see an impact on the near horizon. The percentage of new construction occurring in upper-midscale and upscale absolutely dominates the landscape.
—Bruce Ford, VP, director of business development, Lodging Econometrics