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Published on : Wednesday, September 7, 2016
US’s largest hotel luxury brands are falling behind in room-demand growth than the small hotel brands in 2016. Keeping in mind the recent growth-rates of the luxury hotels, some of the market experts have predicted that the lodging market in United States might soon reach the end of the positive-demand cycle.
In the second quarter of 2016, hotel giants like Hyatt Hotels, Starwood Hotels & Resorts and Marriott International’s growth figures have suggested that the top-end demand growth of the hotels has either slowed down or stopped.
Ritz-Carlton of Marriott has received North American RevPAR growth rate of 1%. Starwood’s Luxury Collection and St. Regis RevPAR have experienced a 0.5% decline, where the Grand Hyatt and Park Hyatt have received a decline of 2% RevPAR.
The senior managing director of CBRE Hotels, Mark Woodworth has stated, “Corporate investment has been soft and some cutbacks in travel, both individual business and small corporate groups, have occurred as a result.”
According to Jan Freitag, the senior vice president of hotel research firm STR, the industry is witnessing a slowdown for sure.
According to the research firm Lodging Econometrics, by the end of June 2016, the number of hotel projects in US, which are under construction at present, has jumped 21% from the previous year.
The vice president of Raffles brand and luxury sales at FRHI Hotels & Resorts, Diana Banks has informed, “Our hotels are performing well. We’re not seeing huge growth, but we’re not seeing a reduction.”
The luxury hotel sector in US accounts for 5% rooms available in the country. The entire hotel industry is still not sure whether the slowdown would bring the end to the positive-demand cycle in recent years or not.