NEW YORK— It seems that U.S. hotels are on the rebound as both the full-service and limited-service segments report strong growth in revenue per available room (RevPAR), said Moodys Investors Service in its latest Red-Yellow-Green quarterly report on the health of U.S. real estate underlying commercial-mortgage-backed securities (CMBS). The hotel segment had scores of 68 out of 100 for full-service and 69 for limited-service, pushing them into the green zone, for the first quarter of 2004, the latest available data, compared to scores of 53 for full-service in the fourth quarter of 2003, and 55 for limited-service hotels. In the hotel sector overall, RevPAR is up by 8.4% year-over-year, and demand for new hotel rooms is expected to outpace supply by a strong 7.5%, because of strong demand and a shallow supply pipeline, said Moodys analyst Sally Gordon, author of the report.
