Economic impact of a new hotel development in your community
23 Sep 2020
Throughout the last 4 months or so, we (Core Distinction Group) have had many calls and emails from community leaders, hotel owners, hotel investors, bankers, developers, brands and so on to ask us what our thoughts are on the current state of the hotel industry and hotel development. Although those conversations are in depth, my conclusions, when it comes to new hotel development are always the same. When speaking to community leaders and hotel developers looking at beginning the process of conducting a Comprehensive Hotel Market Feasibility Study, START NOW!
I may be bias but, I believe my reasoning and opinion has some merit. Considering that 75% of our municipality clients have little to no lodging supply in their community, the economic impact of a new, quality hotel can be substantial. Let me explain in more detail. The average US Hotel Occupancy in 2019 was 66.2% 1. Great numbers! Additional data shows that the average US Hotel Occupancy in 2008 was 59.8% 1 and the average US Hotel Occupancy in 2009 54.6% 1. In addition, the average US Hotel ADR (Average Daily Rate) in 2019 was $131.21 2 and US Hotel RevPar (Revenue Per Available Room) in 2019 was $86.76 3.
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