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HDC: Analysts adjust forecasts, expect slowing growth

According to Sean McCracken, 2016 was rough than expected and as a result, the 2016 Hotel Data conference speakers mentioned that there will be a slower growth in 2017 than it has been in the recent years. However, this was not the case with CBRE Hotels, and STR  Hotel News Now’s Parent Company officials who said that despite things being harder than before, the industry is still doing well and the expected crash will not be as severe as those expected earlier. Amanda Hite, the SPR president as well as CEO declared that SPR is growing and expects to grow further. According to Hite, such growth taking part early within the years as well as so quickly was not expected. However, she indicates the absence of rate growth has been quite challenging for the last 3-years but there are projections that higher growth is expected. CBRE Hotels also expect to grow in 2016.

  SPR expects to grow in 2017 but at a weaker pace as it is the case with CBRE Hotels who projects to grow at a slightly higher pace. However, both companies expect that their occupancy to fall. According to CRBE senior managing director, Mark Woodworth, the industry experienced quick as well as dramatic declines in the last two cycles, something not expected this time round as the cycle is expected to go on with some solid growth for the near future.  

According to sacks, developing tourism and travel priority amongst the public and the declining consumer confidence as well as corporate spending tightening are two economic trends impacting the hospitality industry.  There are still some chances for optimism, which include: record-high absolute values of performance indicators, strong profits, a relatively stable economy, and moderate supply growth.

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