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Hotel Real Estate Market Stays Hot
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1 Comments ::  :: South Padre Island, Investment, Economy, Second Homes |
Hotel real estate market stays red-hot in 2006
While headlines are trumpeting a deflating of the housing real estate bubble, the market in hotel real estate continues to boom.
Many hotel buyers are flipping properties quickly to take advantage of the hot market.
"Supply is limited," Paider said, "and new-builds are minimal because of high construction costs. At the same time, there are strong operating fundamentals, which mean high rates and occupancy."
Added to those positives are "the return of the international traveler, growth in the group and convention business and a higher level of hotel brand awareness," said Bjorn Hanson, a principal with PricewaterhouseCoopers' leisure and hospitality practice.
Some observers think this pace can be maintained for quite a while.
"Resorts are very hot and may even ride out any future cycles," Sullivan said. "There are 75 million baby boomers with a lot of discretionary income who will be visiting resorts in the coming years."
Those factors, he added, are bolstered by "the continued strong fundamentals of the business: positive supply-demand growth imbalances for at least a couple more years and very strong pricing power, especially at upscale properties in key markets."
For those selling travel, a big question is: How will this affect rates and product?
The customer is changing and expects things he or she did not seek in the past, like flat-screen, plasma televisions, etc. |
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By
Janet @
Tuesday, October 03, 2006 11:30 AM | |
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