Lodging was one
of the first sectors
to feel the punch
of the recession.
It’s also one of the
first to make a
Sending a message that it is recovering and then some, the hotel sector’s trength is now at Herculean levels.
The top tiers are slightly less fertile for investment than the lower-priced chains but overall, the industry is having a golden moment.
“It’s a good time to invest in the industry,”
says Robert Mandelbaum, director of research
information services at PKF Consulting. “In
fact, it’s one of the better times.”
“There’s not a lot of new competition in
2013 and 2014, which will perpetuate the
growth in occupancy,” he continues. “That
allows hotels to drive prices, and they are
benefiting from the ADR.”
Benefitting indeed. In a March report,
PKF Hospitality Research predicts domestic
hotels will experience a 6.1% increase in
RevPAR for the year, prompting a staggering
supports these claims. “Since the start of the
year we’ve seen fairly strong operating perfor-
mance in all segments of hotels across our
portfolio,” says Tyler Henritze, a senior manag-
ing director in Blackstone’s real estate group.
“Q1 has met or exceeded expectations.”
These positive forecasts, and first-hand
experience, stem from astounding occu-
pancy levels as well as a dearth of new supply,
according to several industry analysts.
“We’re seeing some of the most favorable
operational metrics today than we have in a
By Rayna Katz