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No Decline for Business Hotels in 2008 |
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Thanks to demand outside the U.S., the global lodging industry is finding traffic remains strong for high-end hotels |
If you pay attention to headlines or the lead items on the nightly news, it would be easy to conclude that the sky was falling, at least economically. Combine this doom-and-gloom talk of a recession with the well-documented problems of the airline industry, and it would be natural to conclude that the lodging business would be equally afflicted.
But the numbers don't bear this out.
Commerce Dept. figures show growth in gross domestic product of 0.9% for the first quarter, while a recession is usually defined as two straight quarters of GDP decline. And the lodging industry is projecting almost identical growth figures for 2008.
Not Quite So Dire
Of course, if you've just experienced a swingeing mortgage-rate reset or are having trouble filling the tank on your SUV, none of this cuts much ice. But in the bigger scheme of things it does suggest that conditions might not be as dire as some people claim.
On June 2, J.W. Marriott Jr., chairman and CEO of Marriott International (MAR)-owners, in addition, of the high-end Ritz-Carlton chain-said in a speech that the company's international lodging business continued to be strong but that softer demand trends were affecting the U.S. market. He added that "the company is likely to report second-quarter North American RevPAR [revenue per available room, the standard gauge of hotel performance] growth of approximately 2%, compared with prior company guidance of 3 to 5%."
So, there are slowing rates of growth rather than an actual decline.
External Source - For the complete article click here
Source - BusinessWeek
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