Despite the many struggles that the United States economy faces, the hotel industry actually performed very well during the last half of 2013. This fact leads economists to believe growth in the hospitality sector will continue well into 2014.
PricewaterhouseCoopers, experts in the hospitality industry, studied the data and confirmed that business bookings for conferences and group meetings for 2014 were very promising. Overall, by the end of 2013, PwC expected lodging demands to increase by 2 percent. Since supply growth increased by .9 percent, hotel occupancy levels should increase to over 62 percent. Luxury hotels should continue to experience strong growth, possibly reaching occupancy rates of almost 75 percent by the end of 2013, despite a 25 percent increase in supply since 2007. These rates are the highest reported since 2007.
It is clear that, despite the government shutdown and other economic difficulties, the hospitality industry is rebounding from the troubles of past years. These numbers indicate that now is the time for hotel management to consider upgrading their properties and expanding their facilities. Although hotel growth is expected to continue, competition in the hospitality sector is still fierce. Those who have the most enticing facilities will attract the most visitors.
If you need help in the Western US, please contact Ed LaCivita or Craig Sullivan at Parkwest General Contractors.