Search
 

GlobeSt.com UPDATE: S. Fla. Hotels Weathering Slowdown

MIAMI-The hospitality industry in Broward, Miami-Dade and Palm Beach counties appears resilient so far to an overall weakness in the US economy, though this softness is posing a challenge to locally based hoteliers in markets elsewhere.

By David R. Corder | Updated on June 27, 2001

MIAMI-The South Florida hospitality industry is exhibiting a resiliency so far at a time when other US metropolitan markets are experiencing noticeable weakness. While that is good news for hotel companies developing properties in South Florida, the overall weakness in the U.S. hospitality industry could pose serious challenges to locally based hotel chains such as Extended Stay America Inc. and Innkeepers USA Trust.

Hotel revenue per available room declined from 4% to 6 % just during May this year in 10 metropolitan markets tracked by UBS Warburg, the New York-based investment-banking firm. The firm does not survey the South Florida markets, however.

“Because business travel is declining, we believe an increasing number of hotels in the weakest markets are reducing room rates and more aggressively pursuing group and contract business, which is rate competitive,” Keith Mills, a UBS Warburg analyst says in a recent market report. “We believe these trends will likely continue into early to mid-2002, putting further pressures on lodging company RevPAR and earnings growth.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.