WALNUT CREEK, CA – Marcus & Millichap forecasts a solid,
though muted, pace of economic growth will drive improvement in national hotel
performance in 2013. Nationwide,
Hotels are riding positive momentum early in the second half
of 2013. Record room nights in July signal strong results for the peak summer
season and indicate that leisure travel has suff ered little from reduced
take-home pay due to higher payroll taxes.
The outlook for the sector remains upbeat through the second
half of the year as the economic momentum, despite hurdles, remains sturdy and
development remains contained.
However, given the hotel industry’s penchant for
overbuilding, the recent increase in construction projects underway in some
markets and chain scales merits monitoring.
Some oil and gas markets, and upscale chains in particular,
bear a higher risk of over-development. Outside of a few states and chain
scales, however, construction lenders are generally choosing well-sponsored
properties and chain scales that meet under-served demand in a market and are
forsaking projects where demand does not justify additional supply .
For a complete copy of the company’s news release, please
contact:
Gina Relva
Public Relations
Manager
Marcus &
Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
(925) 953-1700 ext.
1716
(510) 999-1284 mobile
(925) 953-1710 fax
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