HNN recaps the top things to know from 2013 as part of its look back at 10 years of the hotel industry.
GLOBAL REPORT—The U.S. hotel industry by 2013 was far from the depths of the recession, and for the first time in a while, hoteliers weren’t constantly looking over their shoulders.
During the 2013 Americas Lodging Investment Summit, Randy Smith, co-founder and chairman of STR, parent company of HNN, said revenue per available room in the Americas region hit a milestone after two years of consistent growth.
“It’s really finally good to see demand growth exceed supply growth for a sustained, long period,” he said. “Really the only one other time we saw that was from 2005 to 2007. This is really nice.”
Despite the positive outlook for the year, hotel executives noted there was still room for improvement. A panel of executives at ALIS pointed to strong occupancy levels, but rate growth still wasn’t where they hoped it would be.
“Group has not come back to the level in North America that transient has either by occupancy or by rate,” said Steve Rudnitsky, then-president and CEO of Dolce Hotels and Resorts. “There’s still kind of a halo effect of bookings that occurred during the downturn that we’re still sort of cycling through that is depressing rate to some extent,” adding that booking pace has been up double digits in the first quarter and approximately 5% for full-year 2013.
Real estate investment trusts kept their eyes on the transaction market, looking to make the best deals possible. Some REITs turned from the picked-over urban assets to target those with value-add opportunities.
Political issues provided plenty of uncertainty for an industry looking to fully bounce back, from the ongoing fiscal cliff debate to the pending full implementation of the Affordable Care Act.
However, the economic environment at the time proved to be just right for Hilton to announce its initial public offering, a move that drew praise from hotel industry experts, calling it a positive move for the industry overall.
“It should be a win all the way around. It’s good for Hilton, it’s good for Blackstone, and it’s good for the eventual shareholders,” said Geoff Davis, then-president and senior principal of HREC, a Denver-based hotel brokerage and advisory company. “The hotel market is on an upswing but hasn’t reached full recovery, so there should be some good revenue growth for the company that will make the stock perform well down the road.”
Read through the stories below to see more industry news from 2013.