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Mixed Profit Forecast For Hotel Property Segments

ATLANTA—While the profit outlook for full-service, resort and convention hotels is bright, PKF Hospitality Research reports the forecast for limited-service hotels is decidedly less sunny.

By Sule Aygoren | Updated on April 23, 2013

ATLANTA—The profit outlook for full-service, resort and convention hotels is bright. However, the forecast for limited-service hotels is decidedly less sunny. The hotel industry overall is expected to see 6.5% compound annual growth in room revenue through 2016, resulting in a CAGR of 6.1% percent in total hotel revenue during the same period.

So found PKF Hospitality Research LLC, which examined the financial performance of hotels for the period 1978 through 2011, and used the data to measure the relationship between annual changes in total hotel revenue and movements in NOI for full-service, limited-service, resort and convention hotels.

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