Hotel Industry Poised for Growth in 2017

 

Hotel Industry picc

Hotel Industry
Image: zacks.com

Experienced real estate investment professional Matthew Josef Gorelik functions as the founder, CEO, and chairman of Los Angeles-based firm Township Capital, LLC. Recently, Matthew J. Gorelik and the team at Township Capital, LLC, secured a co-investment deal for a portfolio of four limited-service hotel properties with a tenured developer in the hospitality industry.

Recent research indicates that the United States hotel sector is expected to see modest, but reliable, gains through the end of 2017, in spite of potential turbulence in the political and economic sectors. Listed below are three factors that are suspected to influence the positive growth of the American hotel industry this year.

1. Greater demand for rooms than supply. Occupancy growth in the US lodging sector is expected to incur a demand rate of 2.1 percent, compared to a 2 percent rate of supply. As the economy continues along its path to recovery, travelers are growing in number, creating a stronger desire for lodgings with modern amenities.

2. US hoteliers investing abroad. Many American real estate investors are looking at properties in China, India, Brazil, Russia, Africa, and the Middle East. These international markets have potential to turn significant profits for US companies as these foreign locales expand their potential as new hubs for tourism and business.

3. Brand loyalty initiatives. Many companies are looking to connect with guests on a more personal level in order to earn brand loyalty and improve rates of customer retention. By relying more heavily on social media marketing and the development of apps that allow for easy booking and mobile check-in, professionals within the hotel industry are set to improve the overall customer experience, resulting in higher rates of guest return.

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