By Sean Skellie, IDM Partner, VP of Business Analysis
In the last two months, I have had the luxury of attending and speaking at many industry conventions and conferences held at the national and regional level. Over and over, the same message was stressed: the hospitality industry is entering uncharted territory.
We are experiencing demand and occupancy at new heights nationally with top markets reaching over 85% occupancy. Since our industry began tracking national performance in the late 1980s, we have experienced two major incidents that took the changes in annual revenue to an all-time low: the attack on 9/11/2001 and the fallout of the national recession in 2010. As a result of both events, our industry experienced the worst of times as businesses and individuals limited travel. Yet in 2014, only four years after the lowest point in our industry, we will be reporting an all-time high. It is expected that the nation’s occupancy will be nearly 67% and have an average rate of more than $115.
We expect 2015 to continue to be a banner year with occupancy up 5% over 2014 and rates going even higher. So – business is back, people are traveling, hotels are slowly being added and built in markets, but the rates for hotels are definitely on the rise no matter the product or segment.