Hotel Development Outlook – 2019
Hotel developments are an important part of the investment portfolio at American Life, Incorporated. Our investors have been reaping the rewards of a successful development year in 2018, and the good news is that this is expected to continue in the coming year.
Hotel performance metrics have been exceeding expectations this year, leading major industry forecasters to adjust accordingly. In particular, Average Daily Rate (ADR) projections were altered mid-year based on pricing power that was higher than expected. Other metrics, including occupancy and RevPAR (Revenue Per Available Room), are also projected to increase into the new year.
The driving force is ongoing consumer confidence and spending power that continues to support a strong economy. With low unemployment and personal tax cuts leaving more disposable income, travel and tourism have benefitted, paving the way for robust business for hotel properties.
Demand is continuing to exceed hotel supply – even as new developments enter the pipeline. According to industry research organizations, supply has exceeded demand for the past eight years, and this trend will continue even with the projects currently in the development pipeline. In fact, forecasters are anticipating a very slight increase in occupancy.
Performance metrics for the hotel industry are positive overall, although it is important to consider fluctuations by regional market. That’s why it’s important to choose an investment company that understands today’s development climate and can choose investments in areas with the best returns.
If you’re looking for the perfect investment for your portfolio, contact American Life, Incorporated today. Our professional advisors can discuss the best opportunities in optimal markets to bring you the best returns for your investments. Our team oversees the entire development process, from site acquisition to construction and operations management. Contact us at 206-381-1690 in our US office at 2710 S. Hanford Street, Suite 100, in Seattle, Washington, or at any of our international offices in Shanghai, Tokyo, or London.