WALNUT CREEK, CA -- The thriving energy and auto
manufacturing sectors, and new vigor in housing, are boosting prospects for
economic growth that will support higher occupancy and room revenue in the
nation’s hotels, according to Marcus & Millichap’s second-quarter industry
report.
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Government spending cuts, however, will weigh more greatly
on economic growth as 2013 progresses, though the effects of reduced spending
and travel by government personnel and private-sector contractors is not
certain.
Recent quarterly earnings calls by major hotel owners and
operators revealed that recent declines in government-related room demand have
been offset by additional growth in room nights from other demand segments. As
room nights rise to record levels, supply growth remains restrained.
The planning pipeline has grown over the past year, and the
number of rooms under construction rose more than 18 percent during that time.
Those impending deliveries, however, will expand national
room stock a manageable 1.5 percent this year and beyond.
Construction lenders still view hotel construction
cautiously, thereby clouding the status of planned projects.
Overall, there is an appetite for projects in locations
where a hotel can capture unfilled room demand, and an aversion to new hotels
that would merely redistribute existing demand.
For a complete copy of the company’s news release, please
contact:
Ben Johnson
Marketing Director
Marcus &
Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
(925) 953-1700 ext.
1736
(925) 953-1710 fax
(925) 270-9079 cell
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