A Conversation With HREC's Richard George

LOS ANGELES-We caught up with Richard George, a principal in the Santa Monica office of HREC Investment Advisors, to discuss where the opportunities are in the hotel sector, how he is valuing hotels today, and the “silent 800-pound gorilla in the room.” For the full text of the interview, read on:

Where does the hotel industry stand from a performance standpoint? Have we seen it hit bottom yet? And when will we see RevPAR gains again?

George: The short answer is no, we have most definitely not hit the bottom from a macro-economic standpoint or from a hotel operations standpoint. Unlike the misleading indicators in the stock market prompting some to feel like there is a recovery afoot, hotel industry performance is a true indicator of economic performance and of what really drives this economy forward–jobs and business expansion–and hotel performance will continue to decline well into next year.