ATLANTA—The Hunter Hotel Conference kicked off yesterday and provided plenty of reasons for continued growth expectations as the result of both solid industry fundamentals and the overall economy.
Held at the Marriott Marquis here, the opening day of the event included a panel entitled “Statistically Speaking” in which Vail Brown, VP, global business development and marketing, STR, pointed out that overall U.S. demand has increased 4.6%, which is well above the 20-year average. She also noted the company is projecting overall RevPAR for 2015 to increase 6.4%.
Brown said there are some 129,000 rooms under construction in the U.S., up 32% over last year. She also noted that 94,000 rooms are expected to open in 2015, compared to 63,000 in 2014. Brown added that 67% of those rooms are in the upscale and upper-midscale sectors.
Mark Woodworth, president, PKF Hospitality Research, observed, “This is the midpoint of the cycle as we see it.” He added that the company is bullish on the next couple of years and noted, “Profits are going to be positive.” He projected RevPAR growth for the industry in the low-7% range for 2015.
In a session entitled, “2015 U.S. Economy & The Lodging Industry,” Greg Miller, chief economist and SVP, SunTrust Banks, Inc., stated, "The economy is stronger than you think.”
He touted low construction costs for the industry. “If construction is part of your portfolio, this is the time to build.” Of the overall economic growth, he noted, “Next year, it’s probably going to slow down.” Additionally, Miller projected first-half GDP growth for 2016 to be in the 3-3.5% range, and noted, by the middle of 2016, interest rates will be higher.
