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Slowing Fundamentals Hamper Hotel REIT Performance

October 22, 2008

Analysis of:Slowing Fundamentals Hamper Hotel REIT Performance | www.commercialpropertynews.com

The article's points are well founded.  In addition watch the Office Market.  As office market vacancies decrease, the hotel occupancies will increase. The  Hoteliers are now and will become more competitive in their rate structures offering reduced prices and other amenities to compete for the commercial business and tourist traveler. Another inidcator to the health of the industry is the business in Las Vegas where many companies hold their conferences.  As this starts to turn around in the near term the rest of the country will start an upward swing.  This may not happen until mid 2009 depending on the U.S. ecxonomy in general. In the past two to three years the hoteliers have increased pricing whereas occupancies have remained relatively flat. Thus the boom in the hotel industry has been softening due to more supply and cutbacks.

Hotels that would be affected by the current economic slowdown

April 3, 2008

Analysis of:Hotels Most Vulnerable to Recession Scenario | nreionline.com

Quite likely the hotels most to be affected are full service hotels in major metropolitan areas rather than limited service hotels. Consumers will be looking for "reduced rates" or less expensive venues in the next two quarters, at least, if not through the end of the year. I do not think New York City will be as affected as other major metropolitan areas as the influx of European travelers will still bolster their economy.  The weak dollar in relation to the UK pound and the Euro make traveling to the US and NY in particular quite economical. Limited service hotels offer much reduced pricing and with the free breakfasts as an amenity will be an inexpensive alternative to the full service hotel. 

Hotel Outlook for 2008

December 10, 2007

Analysis of:Travel Industry Prospects Bright Despite Economic Uncertainty | www.hotelnewsresource.com

The heady days of high occupancies and correspondingly high rates may soon be adjusting. I believe that occupancies and then rates will decrease in the 2nd quarter of 2008.

Too Optimistic can be Unprofitable

June 22, 2007

Analysis of:U.S. Hotel Activity Should Remain Strong, Jones Lang LaSalle Predicts | www.commercialpropertynews.com

The hotel industry has had the ability to increase prices to show higher profits and to offset operating costs. This in turn has reflected in higher sales prices in the past 3 years of individual hotels and portfolios. There are trends that are happening that will have an effect on hotel profits in the near term, most likely by 2008.

The Hospitality Economic Cycle, some factors to consider

April 12, 2007

Analysis of:Hotel Industry Faces Uncertain Future | www.globest.com

This article that appeared in Globe Street on 4/12/07 superseded another article Globe Street article posted on 4/10/07 (http://www.globest.com/news/882_882/atlanta/159652-1.html).

I believe that a slow down is imminent, but this may come sooner than later and I think this will happen sometime in 2008.

Changing Times

March 26, 2007

Analysis of:Another Groundbreaking Year for Hotel Sales | nreionline.com

Changing times. Buyers interest in Limited Service Hotels flipped to Full Service Hotels, and money to burn; but watch out for flatter occupancies.

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