6 Replies Latest reply: Dec 5, 2014 9:35 AM by jakeal RSS

Hotel Industry Even Stronger in 2015

erc Platinum
Currently Being Moderated

http://www.mortgagebankers.org/tools/FullStory.aspx?ArticleId=53588


A very short, but succinct article highlights the ongoing momentum of the hotel industry, which understandably, currently follows a demand oriented pricing/perks model.


Key Points:

2014 Hotel Occupancy finished at an 18 year high

Room rates and Revenue Per Available Room (Revpar) was in the strongest position since 1987

2015 Hotel Occupancy will continue to increase

Room Rates (2015 average of $121) will rise another 5%

Revpar will rise another 6%


Not in the article, but fun facts we all love to know and tell: Marriott has over 45 million Rewards members and growing (Hilton over 40 million); is a financial leader in the hotel sector setting earnings, revenue, revpar, and stock price records      (strategy changes unlikely ).

 

As that famous hotel guest Bette Davis predicted over a half a century ago, any elites expecting increased benefits,

 

better, "Fasten your seatbelts, it's going to be a bumpy night"

 

Keep on keepin' on Insiders - we're the best shot we've got

(For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Hotel Industry Even Stronger in 2015
    bejacob Platinum 38 Reviews
    Currently Being Moderated

    Airlines don't  want to share the good fortune of lower fuel prices with passengers. Funny how when fuel prices go up, passing along the costs doesn't seem to bother them.

     

    I suppose we shouldn't expect the hotel industry to share their good fortune either. We'll have to keep watching this site for bargains and suggestions on how to get the most out of our travel dollars.

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

    • Re: Hotel Industry Even Stronger in 2015
      jerryl Platinum 2 Reviews
      Currently Being Moderated

      totally agree and heard one senior exec say we don't want to drop prices and then have to raise them if prices go back up. As I stated in another article with cost going down an upstart will emerge as they usually do or one of the smaller players will expand to existing  markets with lower prices and the big guys will follow. By the way this is one big negative on consolidation a true oligopoly.

      (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Hotel Industry Even Stronger in 2015
    erc Platinum
    Currently Being Moderated

    bejacob and jerryl

     

     

    Parks & Recreation Confessions
     
      My man Mr. Schuester and I agree (he apparently, more enthusiastically). It's all about (at least for the near future) tips, techniques, and insights (as in policy "gotchas" to watch out for) rather than nostalgic hopes, wistful wishes, and unlikely dreams. The strength of the underlying hotel business (which impacts the rent/fee paid to the property owners) is why we are seeing record prices for the hotel real estate asset (Hilton selling Waldorf, Marriott's landlord selling the Marriott East Side).

    In addition and perhaps because of, the strength of the market, disappointingly for us travelers and lodgers, "
    Both Hilton and Marriott (this is an interesting link about Marriott business news) are taking pages out of the airlines' fee-based handbooks and changing their cancellation policies, the New York Times reports". I wouldn't be surprised to see additional changes where the hotel chains squeeze even tighter, emulating the frustrating, irritating, but financially (unfortunately for us) successful airline tactics.

    I have a handful of reservations booked months ago that at the time of reserving, I winced, but now I'm glad I have them because rates have increased from $5 a night to $50 (Vegas Gateway Chateau).

    Even in an area that might represent an opportunity for US travelers, the strength of the dollar, I've observed Marriott cleverly (and somewhat aggressively) matching increases comparable to the currency valuation change (Brussels Marriott).

    2015 is the year for sharing for us Insiders (or The Man and his evil sidekick The Greater Team will squash us like a bug on the windshield of life).
    Hup, hup




     

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Hotel Industry Even Stronger in 2015
    jakeal Gold 15 Reviews
    Currently Being Moderated

    erc

     

    Thanks for sharing.  No doubt deals will become ever more important.  The question is how long can the good times last?

     

    jerryl

     

    I think we are seeing some of that already with low cost carrier Frontier airlines. They have expanded in the last year and have placed an order for new planes: ( Frontier Airlines orders nine airbus A321ceo aircraft| Reuters).  I have also seen some of the legacy carriers announce new routes in the last month which are routes where they will be competing with another legacy carrier which hopefully will drive prices down.

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Hotel Industry Even Stronger in 2015
    brightlybob Platinum 10 Reviews
    Currently Being Moderated

    Interesting info, thanks for sharing erc

     

    With your help, I'll keep on keepin' on!

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

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