Search
 

Hotel Rates Poised For Low Growth

A healthy economy is expected to keep hotel demand strong in 2018, but rates are only expected to climb 5%.

Los Angeles Los Angeles

The hotel market is poised for a healthy year. Coming off a relatively strong 2017, the hotel market is expected to see strong demand, fueled by strong employment and low new construction. Hotel rates, however, are going to continue to be anemic. Carter Wilson, VP of consulting and analytics at STR, expects to see 5% rate growth this year, which he knows will “be a disappointment” to some. Still, the hotel market is healthy, and Wilson says that he remains bullish.

“The hotel economy is tied to the overall economy, and the overall economy is firing on all cylinders right now,” Wilson explains. “We effectively are at full employment and we have strong consumer confidence and estimates keep increasing. That all bodes well for hotel demand. We had strong demand growth in the third and fourth quarter last year. Rate growth, however, seems to remain anemic, and this year, we expect to see 5% rate 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.

Kelsi Maree Borland

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author

Recommended Stories

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.