NASHVILLE—The seventh annual Hotel Data Conference, which kicked off Wednesday, provided plenty of statistical support for the widespread optimism that’s been seen throughout the lodging industry in recent months.
Held at the Omni Nashville Hotel here, the event played host to more than 500 attendees. During the opening session, Adam Sacks, president, Tourism Economics, pointed out that “consumer spending on hotels for the last three years has jumped some 25%,” more than twice the level of other industries. Sacks added, “We’ve been enjoying being part of an industry that has outpaced the economy.”
Steve Hennis, director, STR Analytics, noted that occupied room nights are up 3.3% year to date, and 14.3% above the prior peak in 2007. He also stressed that the current cycle is “unique from a supply-and-demand standpoint,” pointing out that there have been under 200,000 rooms added compared to the nearly one million rooms that were added during the ‘90s.
Jim Abrahamson, CEO, Interstate Hotels & Resorts, weighed in on current conditions. “It’s actually a little better than we think it is. We’re seeing strength across all segments,” he said. Abrahamson later added the industry could see even greater demand if airlines provided more flight options. “I think we’re under capacity,” he insisted.
Meanwhile, Tom Corcoran, chairman, FelCor Lodging Trust, was also bullish and chided the naysayers. “A lot of people are trying to look to the other side of the mountain, but there’s a ton of reasons to fill continuously good. We’ve got a long ways to go, enjoy it,” he said.
Randy Smith, chairman and cofounder, Smith Travel Research, concurred and took it a step further, “To have the six metrics we track hitting record levels is something I haven’t seen in my 40 years,” he said. While Smith did acknowledge the downturn is coming eventually and global risks are substantial, he noted, “I really think the best times are still in front of us…I think we’re good through the end of 2016.”