Why hotels are well placed to stay profitable

Five reasons why the hotel sector will remain resilient

Research analysts at PKF Hospitality Research put forward five reasons why hotels will survive the ongoing economic turbulence. Firstly: corporate profits. Despite uncertainty about the future, the private sector will likely remain resilient. Business travel will go on, as corporate profit growth continues as expected throughout the 2011-2015 period. Second, ongoing economic and social problems like unemployment are not going to have a negative effect on the hospitality industry. However, economy hotels may suffer; the higher the average daily rate, the better the hotel’s performance.
Third, the stagnation of GDP in the western world mostly reflects shortfalls in state and municipal government spending – and people in these areas proportionately don’t travel a great deal. Fourth, hotel rates are likely to remain affordable, staying within the boundaries of inflation. Limited ADR growth will help protect hoteliers from any sudden economic shocks. And finally, for those who are employed, personal income is forecast to grow, slowly but surely.
[pictured: Capitole Square, in front of Crowne Plaza Toulouse; courtesy IHG]


Check Also

ITB, China, Anbang, IHG, takeover, bid, M&A

China’s Anbang eyeing takeover of IHG?

Contradicting reports about group’s plans

Vietnam, tour operator, IHG, investment, tourism, airports, Hanoi, HCMC, infrastructure

Vietnam to reach out to trade in Scandinavia

New travel and tourism investments planned as arrivals soar

Doubletree, Hilton, Minsk, Belarus, upscale hotel, IHG, Crowne Plaza, Soviet, Lenin, museum, Marriott

Belarus gets more upscale hotels

DoubleTree by Hilton debuts in Soviet-era timewarp

F6, best, hotel, nordic, scandinavia, cities, copenhagen, oslo, helsinki, stockholm, hotels.com, review, guests, stay, rival, continental, rosenkrantz, nordic choice

“Best” hotels in Nordic countries listed

Copenhagen hotels suffer amid better performing capitals

crowne plaza, meetings, mice, huddle spot, sofas, IHG, standard, business travel

Sofas to enter hotel meeting spaces

Flexible meetings, with food by tablet, enshrined as standard

Britannia Hotels, hotel, chains, UK, best, worst, Which?, list, Premier Inn, Travelodge, survey, poll

Hotels to avoid when in Britain

One chain is named 'worst' for fifth year running