Hotel & Motel Management - February 2009 - (Page 18)

H&MM February 2009 | HotelWorldNetwork.com 18 Trends & Stats BY WARREN MARR “Occupancy levels are expected to take longer to trough than in the previous two recessions.” Supply and demand gap widens greatly during recession D Forecast table, percentage change from prior year Occupancy ADR RevPAR Real GDP Average Supply 2007 -0.4% 6.2% 5.8% 2.0% 1.3% 2008 -4.3% 2.4% -1.9% 1.1% 2.7% 2009 -6.4% -5.2% -11.2% -1.3% 2.1% RevPAR eteriorating economic fundamentals are expected to have a pronounced effect on the lodging industry in 2009— deeper and longer-lasting than the previous two economic downturns. Revenue per available room is expected to decline signiﬁcantly, representing the ﬁrst consecutive two-year decrease since Source: Bureau of Economic Analysis; Macroeconomic Advisers, LLC (Dec. 24, 2008, forecast); Smith Travel Research; PricewaterhouseCoopers LLP (forecast released Jan. 26, 2009) 2001 and 2002. According to the National Bureau of Economic Research, the recessions in 1991 and 2001 lasted eight months each. So far, the current one has lasted 13 months and has not yet ended. The longer duration of the current economic downturn is expected to have signiﬁcant repercussions on the supplydemand environment for lodging in the near term. In the current cycle, although supply growth is expected to decelerate due to tightening credit conditions, demand is expected to contract at a faster pace than in the previous recessions RevPAR, 1989 to 2009 $70 $60 $50 $40 $30 $20 Forecast 1989 1993 1997 2001 2005 2009 Source: Smith Travel Research (1987 to 2007); PricewaterhouseCoopers LLP (2008 and 2009) due to a sharp reduction in discretionary spending. Our current forecast is for a two-year average supply growth of 2.4 percent for 200809, which, when coupled with a two-year average decline in demand of 3.1 percent, is creating a gap of 5.5 percentage points for the current cycle. This gap is wider than previous recessions, when the difference between growth in supply and demand averaged 0.9 percentage points during the 1991-92 downturn and 3.5 percentage points during the downturn of 2001-02. As a result of this increased supply-demand imbalance, occupancy levels are expected to take longer to trough than in the previous two recessions, and the decline is expected to be greater in magnitude. The anticipated occupancy declines are expected to intensify pricing pressures in the lodging sector, resulting in average daily rate and RevPAR declines being signiﬁcantly greater than in the previous downturns. hmm@questex.com Warren Marr is a director with PricewaterhouseCoopers, specializing in the hospitality and leisure industry. Email him at warren.marr@us.pwc.com. CIRCLE NO. 102 CIRCLE NO. 124 http://www.HotelWorldNetwork.com http://www.a1textiles.com http://www.a1textiles.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - February 2009

Hotel & Motel Management - February 2009 Contents Staff Management is Key for Smaller Budgets Perspective Guests Expect More from Green Programs Sales Clinic Legally Speaking HotelWorld Update Consultant's Corner Trends & Stats Laundry Investing Requires Return to Fundamentals Limited-Service Hotel-Chains Energy Management Ice Machines Broadband Marketplace Ad/Editorial Index Checking Out

Hotel & Motel Management - February 2009

Hotel & Motel Management - February 2009 - Hotel & Motel Management - February 2009 (Page 1) Hotel & Motel Management - February 2009 - Hotel & Motel Management - February 2009 (Page 2) Hotel & Motel Management - February 2009 - Contents (Page 3) Hotel & Motel Management - February 2009 - Staff Management is Key for Smaller Budgets (Page 4) Hotel & Motel Management - February 2009 - Staff Management is Key for Smaller Budgets (Page 5) Hotel & Motel Management - February 2009 - Perspective (Page 6) Hotel & Motel Management - February 2009 - Perspective (Page 7) Hotel & Motel Management - February 2009 - Guests Expect More from Green Programs (Page 8) Hotel & Motel Management - February 2009 - Guests Expect More from Green Programs (Page 9) Hotel & Motel Management - February 2009 - Sales Clinic (Page 10) Hotel & Motel Management - February 2009 - Sales Clinic (Page 11) Hotel & Motel Management - February 2009 - Legally Speaking (Page 12) Hotel & Motel Management - February 2009 - Legally Speaking (Page 13) Hotel & Motel Management - February 2009 - HotelWorld Update (Page 14) Hotel & Motel Management - February 2009 - HotelWorld Update (Page 15) Hotel & Motel Management - February 2009 - Consultant's Corner (Page 16) Hotel & Motel Management - February 2009 - Consultant's Corner (Page 17) Hotel & Motel Management - February 2009 - Trends & Stats (Page 18) Hotel & Motel Management - February 2009 - Trends & Stats (Page 19) Hotel & Motel Management - February 2009 - Laundry (Page 20) Hotel & Motel Management - February 2009 - Laundry (Page 21) Hotel & Motel Management - February 2009 - Laundry (Page 22) Hotel & Motel Management - February 2009 - Laundry (Page 23) Hotel & Motel Management - February 2009 - Investing Requires Return to Fundamentals (Page 24) Hotel & Motel Management - February 2009 - Investing Requires Return to Fundamentals (Page 25) Hotel & Motel Management - February 2009 - Limited-Service Hotel-Chains (Page 26) Hotel & Motel Management - February 2009 - Limited-Service Hotel-Chains (Page 27) Hotel & Motel Management - February 2009 - Limited-Service Hotel-Chains (Page 28) Hotel & Motel Management - February 2009 - Limited-Service Hotel-Chains (Page 29) Hotel & Motel Management - February 2009 - Energy Management (Page 30) Hotel & Motel Management - February 2009 - Energy Management (Page 31) Hotel & Motel Management - February 2009 - Ice Machines (Page 32) Hotel & Motel Management - February 2009 - Ice Machines (Page 33) Hotel & Motel Management - February 2009 - Broadband (Page 34) Hotel & Motel Management - February 2009 - Broadband (Page 35) Hotel & Motel Management - February 2009 - Broadband (Page 36) Hotel & Motel Management - February 2009 - Broadband (Page 37) Hotel & Motel Management - February 2009 - Marketplace (Page 38) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 39) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 40) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 41) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 42) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 43) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 44) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 45) Hotel & Motel Management - February 2009 - Checking Out (Page 46) Hotel & Motel Management - February 2009 - Checking Out (Page 47) Hotel & Motel Management - February 2009 - Checking Out (Page 48) http://www.nxtbook.com/nxtbooks/questex/hmm_20091123http://www.nxtbook.com/nxtbooks/questex/hmm_20091109http://www.nxtbook.com/nxtbooks/questex/hmm_20091019http://www.nxtbook.com/nxtbooks/questex/hmm_200910http://www.nxtbook.com/nxtbooks/questex/hmm_200909http://www.nxtbook.com/nxtbooks/questex/hmm_200908http://www.nxtbook.com/nxtbooks/questex/hmm_200907http://www.nxtbook.com/nxtbooks/questex/hmm_20090615http://www.nxtbook.com/nxtbooks/questex/hmm_200906http://www.nxtbook.com/nxtbooks/questex/hmm_200906_voichttp://www.nxtbook.com/nxtbooks/questex/hmm_200905http://www.nxtbook.com/nxtbooks/questex/hmm_200904http://www.nxtbook.com/nxtbooks/questex/hmm_200903http://www.nxtbook.com/nxtbooks/questex/hmm_200902http://www.nxtbook.com/nxtbooks/questex/hmm011909http://www.nxtbook.com/nxtbooks/questex/hmm122908http://www.nxtbook.com/nxtbooks/questex/hmm120808http://www.nxtbook.com/nxtbooks/questex/hmm111708http://www.nxtbook.com/nxtbooks/questex/hmm110308http://www.nxtbook.com/nxtbooks/questex/hmm102008http://www.nxtbook.com/nxtbooks/questex/hmm100608http://www.nxtbook.com/nxtbooks/questex/hmm091508http://www.nxtbook.com/nxtbooks/questex/hmm090108http://www.nxtbook.com/nxtbooks/questex/hmm0808http://www.nxtbook.com/nxtbooks/questex/hmm072108-voichttp://www.nxtbook.com/nxtbooks/questex/hmm072108http://www.nxtbook.com/nxtbooks/questex/hmm070708http://www.nxtbook.com/nxtbooks/questex/hmm061608http://www.nxtbook.com/nxtbooks/questex/hmm060208http://www.nxtbook.com/nxtbooks/questex/hmm051908http://www.nxtbook.com/nxtbooks/questex/hmm050508http://www.nxtbook.com/nxtbooks/questex/hmm042108http://www.nxtbook.com/nxtbooks/questex/hmm040708http://www.nxtbook.com/nxtbooks/questex/hmm031708http://www.nxtbook.com/nxtbooks/questex/hmm030308http://www.nxtbook.com/nxtbooks/questex/hmm021808http://www.nxtbook.com/nxtbooks/questex/hmm020408http://www.nxtbook.com/nxtbooks/questex/hmm010708http://www.nxtbook.com/nxtbooks/questex/hmm122707http://www.nxtbook.com/nxtbooks/questex/hmm121007http://www.nxtbook.com/nxtbooks/questex/hmm111907http://www.nxtbook.com/nxtbooks/questex/hmm110507http://www.nxtbook.com/nxtbooks/questex/hmm101507http://www.nxtbook.com/nxtbooks/questex/hmm100107http://www.nxtbook.com/nxtbooks/questex/hmm091807http://www.nxtbook.com/nxtbooks/questex/hmm090307http://www.nxtbook.com/nxtbooks/questex/hmm080607http://www.nxtbook.com/nxtbooks/questex/hmm071607http://www.nxtbook.com/nxtbooks/questex/hmm070207http://www.nxtbook.com/nxtbooks/questex/hmm061807http://www.nxtbook.com/nxtbooks/questex/hmm060407http://www.nxtbook.com/nxtbooks/questex/hmm052107http://www.nxtbook.com/nxtbooks/questex/hmm050707http://www.nxtbook.com/nxtbooks/questex/hmm041607http://www.nxtbook.com/nxtbooks/questex/hmm040207http://www.nxtbook.com/nxtbooks/questex/hmm031907http://www.nxtbook.com/nxtbooks/questex/hmm030507http://www.nxtbook.com/nxtbooks/questex/hmm021907http://www.nxtbook.com/nxtbooks/questex/hmm020507http://www.nxtbook.com/nxtbooks/questex/hmm010807http://www.nxtbook.com/nxtbooks/questex/hmm121106http://www.nxtbook.com/nxtbooks/questex/hmm112006http://www.nxtbook.com/nxtbooks/questex/hmm110606http://www.nxtbook.com/nxtbooks/questex/hmm101606http://www.nxtbook.com/nxtbooks/questex/hmm-minibarhttp://www.nxtbook.com/nxtbooks/questex/hmm100206http://www.nxtbook.com/nxtbooks/questex/hmm091806http://www.nxtbook.com/nxtbooks/questex/hmm090406http://www.nxtbook.com/nxtbooks/questex/hmm080706http://www.nxtbook.com/nxtbooks/questex/hmm071706http://www.nxtbook.com/nxtbooks/questex/hmm070306http://www.nxtbook.com/nxtbooks/questex/hmm061906http://www.nxtbook.com/nxtbooks/questex/hmm060506http://www.nxtbook.com/nxtbooks/questex/hmm051506http://www.nxtbook.com/nxtbooks/questex/hmm041706http://www.nxtbook.com/nxtbooks/questex/hmm040306http://www.nxtbook.com/nxtbooks/questex/hmm032006http://www.nxtbook.com/nxtbooks/questex/hmm030606http://www.nxtbook.com/nxtbooks/questex/hmm022006http://www.nxtbook.com/nxtbooks/questex/hmm020206http://www.nxtbook.com/nxtbooks/questex/hmm010906http://www.nxtbookMEDIA.com

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