US hotel investment outlook H1 2018
The hotel sector is benefiting from healthy demand fundamentals in the three major sources of business—corporate transient travel, group and conventions business, and leisure travel, underpinned by an expanding U.S. economy and growing corporate profits.
Leisure travel has been spurred by retiring boomers and experience-focused millennials. As a result, 15 of the top-25 markets are posting additional growth in occupancy, which has boosted hotel operators’ pricing power. Hotel revenue per available room marked 3.6 percent growth in the first half of 2018, and the industry has seen 100 months of consecutive revenue per available room growth.