• Are Hotels Back?

    by  • January 21, 2012 • CRE, Economics

    Hotels had been used as a hedge investment for years, but with the economic downturn, consumers cut back on travel and hotels suffered. Calculated Risk today published a graph of hotel occupancy using a 4 week (almost monthly) average. The ups and downs are reflective of the major travel seasons like Thanksgiving and school breaks. But the best news to take is that not only was 2011 closer to the 7 year median leading up to the recession, but the 2012 numbers look to be starting out strong. Of course, the occupancy data is for the weeks at the end of a holiday season, so expectations should be tempered until more data is to be had – but the 2011 occupancy coupled with a strong start is undeniably a good sign. From HotelNewsNow the year-over-year growth is strong too:

    In year-over-year comparisons for the week, occupancy was up 4.9 percent to 52.1 percent, average daily rate increased 5.6 percent to US$102.99 and revenue per available room was up 10.8 percent to US$53.65.

    About

    Patrick Sprouse has over a decade of experience in the commercial real estate sector. Mr. Sprouse has held numerous positions in commercial brokerage, real estate technology and executive operations on regional, multi-market and national scales. Currently Mr. Sprouse is providing management and technology consulting service for a private real estate services company based in Washington, DC with over $1.5 billion in 2015 revenue. Mr. Sprouse has an extensive background in business management, sales engineering, project management, software selection and business analysis as well as organizational change and brand management.

    http://www.patricksprouse.com