Monday, January 9, 2012
Media Monday - Hotel Rates Are Up
A very interesting report in the Economist outlines how Hotel rates have been rose in the USA by 4.3% in 2011 (average daily rate = $107.56). New building of hotel rooms however, only rose 0.6% indicating that the confidence in this growth is tenuous.
I believe this trend will continue. America in terms if HTM is becoming a mature market with limited growth potential. This is mainly due to the short-haul market maturing and the long-haul potential being potentially stunted by the recent developments in the airline industry (see this post as a prime example). This means that if American hospitality companies are to continue to grow profits, they will have to either merge, expand beyond the USA borders and raise prices.