State of the Hospitality Industry from the Lodging Conference
Scott Maloney and Kelli Schaffran attended the Lodging Conference 2016 in Phoenix, Arizona and they returned with the latest news from insiders and experts in the hospitality industry.
Although the impact of public REITs and large equity companies staying on the sidelines is reflected in the transaction volume being down 50%+ in 2016 over 2015 and portfolio deals down 77%, there are bright spots ahead. According to industry forecasts, there is a steady pipeline of development and renovation projects to come in the next few years. The greatest volume is predicted to occur in the next 18 months and then again in 2019, when the transaction volume comes back with confidence, according to experts.
Harry Javer, CEO, Co-Founder, and Producer of the Lodging Conference, kicked off the program discussing what will keep the hoteliers’ foot on the gas.
There are a lot of drivers that are contributing to the incredible success experienced by many in the industry:
- Boomers have more time to travel and the means to do it.
- Millennials are using their funds to travel frequently in lieu of buying homes and cars.
- Household incomes continues to rise, feeding discretionary spending on lodging.
- Travel is far more convenient to than it was even 10 years ago. People are exploring and going farther than they ever have before. Technology is fueling a whole new level of travel.
- There is record level occupancy and room rates.
- Upper midscale, independent, upscale, and upper upscale have all grown through the recession challenges.
Overall, the 2016 Lodging Conference left the majority feeling positive about 2017 and the potential for industry growth that lie ahead.
For images of the conference and a little fun, check out our Maloney on the Move blog.