Hospitality Industry Essay

520 Words3 Pages
a. Construction pipeline metrics showing signs of recovery (Lodging Econometrics, 2013, para.1) The first trend is that the national hotel industry is showing modest recovery as result of increase of new project announcements and construction starts. Both impact early stages of pipeline, where rooms are up by 25% and scheduled to start constructions by 22% (para.1). According to Lodging Econometrics “is going to be slow and steady, good but not great!” (para. 8). United States Lodging real estate trends – Executive summary (Lodging Econometrics, 2013) http://www.lodgingeconometrics.com/pdf/4Q12-US-Summary.pdf The second trend is that there is little development for large and luxurious hotels and casinos (para.8). For these, financing is difficult to be obtained and are still consider very risky. At the end of the year, they totaled only 7% of all the pipeline projects (para.9). The third trend is that 91% of all the projects are less than 200 rooms (para.10). Marriott’s Courtyard, Residence Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn; IHG’s Indigo, Staybridge Suites, Holiday Inn and Holiday Inn Express; Hilton’s Garden Inn, Homewood Suites, Hampton Inn and Suites and Home2 Suites and Choice's; Cambria Suites and Comfort Inn and Suites are the favorites, together accounting for 94% of all projects. b. Lodging Econometrics Q2 2012 U.S. Lodging Report Reveals Development Trends Are On The Rise with 1,180 New Project Announcements in the Pipeline (Hotel-Online, 2012) http://www.hotel-online.com/News/PR2012_3rd/Sep12_LEQ2.html The trend that is impacting the most the hotel industry is the growth of projects of small hotels. The American economy is getting back on its feet slowly but steady. In the last two years, investors are slowly getting back their confidence in the economy and realizing that “an improving economy is not likely to fall back

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