Hotel & Motel Management - February 18, 2008 - (Page 40)

40 News H&MM February 18, 2008 | HotelMotel.com Bumpy road ahead Continued from page 4 65 percent to 70 percent of those rooms actually open. The back end of the construction pipeline, or projects expected to open after 2008, is less than what was reported a year ago. STR predicts demand rate growth for 2008 to be 1.4 percent (a slight decline from 2007 but still a positive growth), allowing pricing integrity to remain in place. Lomanno said 2008 might not be as bad a year as people expected. “Our forecast is for average daily rate [growth] to be about 5.2 percent for the year, which is above the 20-year average of 3.5 percent, and the revenue per available room [growth] is 4.4 percent, which is above the 20-year average of 3.4 percent,” he said. Lomanno’s presentation was an uplifting change of direction from Sperling, who prefaced his speech by noting he would “not be the most bearish person you would hear on the economy, but … not the prince of lightness and softness either.” Sperling noted the average hourly income in the U.S. ($17.71) has increased only 2 cents since 2003. But, he said, families continued to spend more during the past few years based on the perceived notion that their houses were rising in value. In fact, Sperling said, “the typical home [cost] has gone down from $217,000 in November 2006 to $210,000 in November 2007. We’re not just not growing at 10 percent, we’re not even just ﬂat. We’re actually seeing home prices decline.” Fundamentals During a Lodging Industry Investment Council roundtable, also held Jan. 28 in Los Angeles, sentiments about the future of the industry as a whole sided with Lomanno’s. Rick George, principal of HREC Investment Advisors, said property buyers are plentiful, which is a good indication that some money still is available to purchase hotel properties. “The desire for properties continues to grow,” George said. “The fundamentals seem to be good. It’s going to be a little bumpy, but we’ll get through it.” Mike DeNicola, chief investment ofﬁcer of FelCor Lodging Trust, said his company is seeing strong RevPAR from properties that have recently been purchased in midlevel and smaller markets. “Our industry gets lost in averages,” DeNicola said. “We have to be very careful not to get lost in averages. It’s a local business, it’s a local real-estate game, it’s a local economy. “Can the entire big economy pull us down? Yes it can. But are we there yet? No we’re not.” jfreed@questex.com ALL PHOTOS H&MM | JASON Q. FREED After accepting his ALIS Lifetime Achievement award from chair Jim Burba [left], Stephen Bollenbach commented on the industry, “I have to believe that we’re in for some difﬁcult times,” adding that it could last for two years. Jim Burba, ALIS chair, opened this year’s event with a discussion about investing in 2008. Kicking off the ﬁrst day of ALIS were The Incredible Racers, the “boy band” made up of, from left, Tom Corcoran, chairman of FelCor Lodging Trust and AH&LA; Stevan Porter, president, the Americas, InterContinental Hotel Group; and Joe McInerney, president of AH&LA. Business Boosters The Southern Gentlemen package at The Ritz-Carlton Lodge, Reynolds Plantation in Greensboro, Ga., features bass ﬁshing on Lake Oconee for two, one round of skeet shooting at The Gun Club per person, cigars and cognac at The Lodge Campﬁre, 18 holes of golf at The Oconee Course per person and steak dinner for two. The Balsams Grand Resort Hotel in Dixville Notch, N.H., offers guests the opportunity to book the Ski Free Package for $89 per night from Sunday to Thursday. This package includes lodging, breakfast in the dining room, lift tickets to the alpine ski area and trail passes for cross-country skiing. Compiled by Stacey Higgins, shiggins@questex.com CIRCLE NO. 119 http://HotelMotel.com http://www.kenyonappliances.com http://www.kenyonappliances.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - February 18, 2008

Hotel & Motel Management - February 18, 2008 Contents ALIS Attendees: Bumpy Road Ahead Denihan Expands with James Hotel Purchase AAA Updates its Diamond Rating Guidelines Perspective Letters to the Editor Legal FAQ Satisfaction Trends Sales Clinic HotelWorld Update Trends & Stats Locally Grown Food Gains Popularity Companies Cultivate International Ties Wireless Internet Access Opens Up Possibilities Ice Machine Care Improves Efficiency, Performance The Importance of F&B to Leisure Travelers Lamps/Lighting Transactions Events Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - February 18, 2008

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