It looks like once again the hospitality sector is on the rebound, as hotels and resorts are beginning to draw back customers as the economy climbs out of the recession. The hotel industry’s revenue is still below the 2007 peak, but continues to rise. As mentioned in one of our recent blog posts entitled “US. Hotel Pipeline Continues To Grow,” recent reports are optimistic that new construction of hotels may prove to be ready for recovery.
It seems quite clear that the values of some types of properties have rebounded at a much quicker rate than others. This is most evident when taking a look at luxury hotels in major metropolitan areas that accommodate business travelers, which will recover much faster than resorts. Resorts are where people, particularly families, will go to vacation when they have the extra cash, which is not usually on hand during a recession. Also, hotels still in the early stages of construction will take much long to recover due to limited access to funding.
There are several buyers looking to take advantage of the promising market by acquiring hotels and resorts: some who had taken a step back during those rough few years and others who continued to trade regardless of the economic state. KSL Capital Partners LLC, for example, plans to target and renovate distressed resorts. KSL’s founder, Michael Shannon, said, “This is the beginning of what we believe is several years of slow but steady recovery [for resorts], accelerating as income levels get higher.”
With statistics forecasting a brighter future for the hospitality industry, the experienced team at Decorator Industries is ready to work with you. Decorator Industries has been a professional presence in the hotel industry since 1985, and is a leading provider of bed coverings and window treatments to major national and international brands. If you are building or remodeling your hotel, call Decorator Industries today for more information on how we can enhance your hospitality brand—954-436-8909.
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