"Our lodging picks are up 35% year-to-date and have surpassed most target prices," explains Ader. He predicts that interest-rate hikes will become increasingly unlikely and that oil prices will retreat, resulting in a "bullish" economic outlook, with a 4.5% GDP growth in 2001. Current lodging industry estimates seem based on 2.5%-3.0% GDP expectations, "which leaves much room for upside growth," he says.
What would change his outlook? "If a sharp drop in economic activity occurs," he states, "with 2001 GDP predictions falling below 2.5%, the ratings would likely turn negative. But, as long as the economy is strong and consumers have money to spend, we predict growth for the lodging sector."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
