The hospitality industry is a broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources. The hospitality landscape is evolving quickly as new technology demands that hotels become more social and engaging in their marketing efforts, travelers are looking for the best value propositions, and consumer demand is pushing for hotels to make concerted efforts on property upgrades and improvements.
3 key observations about the hotel performance
* "Despite economic headwinds, at home and abroad, the key performance indicators through August 2012 have been strong.
* "Regarding supply & demand, currently the industry is in a sweet spot. Demand growth is, and has been outpacing supply growth for over 25 months. When STR is asked if we are in a recovery or not, from a demand stand point, the recovery occurred back in Feb. 2011. Demand has been normalizing and is expected to slow and grow around +2%, while supply growth will remain muted."
* "In prior downturns, ADR never declined as severely as occupancy so when occupancy recovered, the industry was able to recover ADR at the same pace. This was not the case in the 2008/2009 downturn, occupancies declined close to 10% and when the recovery began, ADR's continued to decline. For the first time ever there was disconnect. Currently, the industry wide ADR growth is above occupancy growth; however, our only concern is that the ADR rebound...