Hotel & Motel Management - December 27, 2007 - (Page 8) » BY JEF F HIGLE Y, EDI TORI A L DIRECTOR Industry’s cycle hits all the right chords he lodging industry has had its share of one-hit wonders. It might not rank up there with “96 Tears” by Question Mark & The Mysterians, but does anyone remember paper-clip REITs? Even condohotels appear to have gone the way of Nena’s “99 Luftballoons.” But when you take away the fads, the lodging industry falls into many of the same long-term trends cycle after cycle— kind of like Neil Young. The lyrics might change, but you can identify the artist in three notes. Don’t be surprised if many of the same themes continue to play. Top storylines will seem familiar. Deals will get done. It’s still a seller’s market, even T with the capital crunch. But time is growing short for owners who want to get out before the cycle’s final curtain falls. I expect one big corporate deal to get done. It won’t top The Blackstone Group’s $26-million acquisition of Hilton Hotels Corp., but it’ll come close. Likely candidates are the usual suspects: Starwood Hotels & Resorts Worldwide and InterContinental Hotels Group. The industry’s hot performance in the U.S. will begin to cool before hitting a wall in 2009 when a huge number of new-construction hotels open. With a pipeline of more than 600,000 guestrooms, the industry is setting itself up for an eventual tight- ening of the belt. Other issues that remain on the hit chart for ’08 include a presidential election that will be decided by an issue that hits hotel owners and operators close to home: their wallets. We’ll also see a scaling back of new brand launches. But most of all, 2008 could decide whether the green (sustainable) hotel movement is a fad or here for the long run. Here’s a hint: The fat lady hasn’t sung yet, and she’s already planning for an encore. jhigley@questex.com The New Name in Hospitality! The Oldest Name in Mattress Pads and Pillows! Introducing For more information about BIOSHIELD® bed linens contact: Louisville Bedding Company Hospitality Division 10400 Bunsen Way Louisville, KY 40299 (818) 207-0770 (818) 484-2393 Fax E-mail: thealy@loubed.com The only patented, EPA registered, non toxic, antimicrobial treatment incorporating green technology The ultimate permanent solution for protection of bed linens against microbes, bacteria, mildew, fungi, allergens and yeast.
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