U.S. hospitality industry sees solid recovery
STR has recently reported record figures in the U.S. hospitality industry. Since January, more than 652.8 million nights were sold in the United States with only 108.5 million in July. “The most surprising is the speed of economic recovery in the sector, said Jack Corgel, Professor of Hotel Administration at Cornell University.” Generally, the hotel industry is lagging behind economic recoveries. This time, it is leading the recovery, “says Jack Corgel.
After the 2008 crisis, STR noted that RevPAR in the U.S. hotel industry experienced a steady decline for nineteen consecutive months, falling to $ 41.14 (€ 30.89) in December 2009. After a 5.4% growth in 2010 and 8.2% in 2011 and 6.8% in 2012, the U.S. hotel industry demonstrated today a healthier posting a RevPAR of 69 $ 46 (€ 52) in July. “In the wake of the collapse of Lehman Brothers [a major investor in the hospitality industry in the United States, NES] a rapid recovery was unimaginable. During eighteen months, we’ve been through hell,” reflects Scott Berman representing the industry leader in hospitality and leisure, Pricewaterhouse Coopers. “We had not seen such a decline in RevPAR since the crisis of 1930,” says Mark Woodworth, president of PKF Hospitality Research.
The STR report highlights that the United States was aware of the crisis before the collapse of Lehman Brothers, from back in August 2008, the beginning of a recession. In early 2009, the Baird / STR Hotel Stock Index fell below 1000 points, while it peaked at 3000 points, in 2007. Friday, September 13, the index closed at 834.01 point 2 (source STR). Only the strongest companies have survived the crisis as banks are now more suspicious towards projects more or less fanciful and require a lot more safeguards.
“There is now a greater discipline in the development of the hospitality industry,” said Mark Woodworth. For Scott Berman, “all market participants behaved admirably While the crisis has had an impact on many businesses, but it should be noted that 95% of the market -. Bankers, shareholders, investors, owners and manager of various hotel chains – have teamed up to deal with this crisis. “The conclusion of the analysis to Mark Woodworth that “the fate of the sector stronger than ever, even stronger than if he had never met the challenges of crisis in recent years.”