The US Lodging Industry: Mid Year 2010

NEW YORK CITY-The US hotel industry experienced a dramatic spurt of positive indicators during the first half of 2010, driven in part by the economic acceleration of the world beginning to emerge from the deep recession. The national economy features positive news which includes an increase in manufacturing, the addition of private sector jobs for six consecutive months, rising corporate earnings and greater business confidence, and an almost nonexistent level of inflation. The negative news still present in the economy include anemic job growth, unemployment hovering just below 10%, foreclosures and bank closings exceeding last year’s levels and a slump in home sales. Furthermore, the stimulus passed by Congress last year to kick-start the economy is about to wind down. World financial markets continue to exhibit anxiety, and the US economy while currently relatively stable remains fragile, and at risk of a double dip recession. 

Operationally the US hotel industry has recently experienced a robust and dramatic revenue growth surge driven in part by an unleashing of pent-up corporate travel demand. Group booking patterns however have yet to significantly improve from the recent downturn, as smaller group business continues to be reserved within a short time frame before events are held.