Hotel industry copes with recovery that hasn’t reached some areas
Occupancy, growth and RevPar rates in secondary markets are trailing those in big cities. Yes, it’s a tale of one recovery in major markets, and in smaller locales, it’s not so much.
Excerpt from HotelNewsNow
Ken Edwards is seeing recovery in the secondary and tertiary markets in which he owns and operates. But the pace of progress is slower than he would like. Whereas in the past economic growth roared back with increases of 3% to 4%, recent expansion has trudged along at 1% to 1.5%, he said.
“I believe that the secondary markets, the economy will continue to grow. The problem is the economic growth is small. They’re experiencing growth, but it’s just the growth the economy is experiencing,” said Edwards, managing partner for Tristar Hotel Group, which manages 15 hotels, in which Edwards has a personal ownership stake in five.