Performance Forecast for the US Lodging Industry
With some varied opinions on the US economy in today’s market, we examined the US lodging industry for our EB-5 investors. With many people investing in hotel real estate development, we wanted to determine the future of the hotel industry. The findings are promising.
The immediate headlines report that growth has slowed. What these headlines fail to recognize is the unprecedented growth in the lodging industry since recovering after the 2008 recession. Growth in occupancy, RevPAR (Revenue Per Available Room) and other metrics have skyrocketed over that period, so some slowing can be expected.
The important thing is that growth continues, making the US lodging industry a healthy, secure industry in which to invest.
Occupancy reached a record 66.1% back in 2018, and it has remained at this level ever since. That means ten years in a row without an occupancy decrease for the industry.
The forecast is for increasing ADR (Average Daily Rate), by 0.9%. While lower than ideal, these are still gains that demonstrate how the lodging industry is healthy. RevPAR is expected to increase by 0.8%, also less than compared with previous years but still in a growth pattern.
The hotel industry, like many other industries, has a cyclical performance pattern that consistently returns to peak over time, making hotel development a solid investment for EB-5 Immigrant Visa program investors looking to add jobs to the US economy.
The bottom line is that hotels continue to operate at record levels based on performance metrics, solidifying the hotel development industry as a profitable investment.
To learn more about how the opportunities to expand your portfolio in the EB-5 Investor Visa program, contact American Life, Incorporated today. Our professional investment advisors will help you choose the best real estate investment opportunity for your individual needs, and we’re happy to answer all your questions about the EB-5 Visa program. Contact us online, call us at 206-381-1690, or visit the USA office at 2710 S. Hanford Street, Suite 100, in Seattle, Washington or at our international offices in Tokyo, Shanghai, and London.