2010 the transitional year for US hospitality market

Author: Joseph McInerney

Categories: Financial, Investment, Staff
Tags: development, market improvement
Joseph McInerney: "We had just sort of a transitional year coming out of the end of the economic downturn that we had.  Last year we had significant increase in occupancy, in average rate and RevPAR.  This year is going to be a year where we’re going to be building revenue based on increasing our average rate in hotels.  One of the interesting things about our industry over the last three years, we’ve had very little new product come into the marketplace.  We had, in the 10 years prior to 2010 we were averaging about 2.2% of new product coming into the marketplace.  At the height of the economic downturn unfortunately we had a perfect storm, we brought in 4.3% new supply in 8 and in 9 we brought in 4.9%.  So we, you know, created another problem for ourselves.  Well, in 2010 we only brought in .7% new product and less than 1% last year and will be less than 1% this year.  So the good news is for the industry itself, we’re going to be back to where we were prior to 2007 in average rate and occupancy.  And we’ll be doing more business so we’ll be providing more jobs because one of the important things about our industry is we are a job creator, we create jobs."
Related videos

2010 the transitional year for US hospitality market

Author: Joseph McInerney

Boutique hotels seeing resurgence in US

Author: Joseph McInerney

Growing tourism figures boosting US employment

Author: Joseph McInerney

Tourism to go beyond gateway cities

Author: Joseph McInerney
  • Aug
    08

    Attaining the attention of global governments

    Hospitality is an industry that if supported appropriately by governments can have a dramatic impact on the success of a whole country or region. The hospitality industry could be doing so much more therefore, to attract the attention of the leaders of countries in order to support a relatively un-risky industry to propel economic growth. [...]