The New Hospitality Market - April 2007
By Darius Helm
Like most segments of the commercial market, the hospitality sector started to slump in mid 2000, and the aftershocks of 9/11 sent it into a tailspin. But by 2003 the sector was already recovering, fueled by a growing economy and record global tourism and business travel. Today, the hospitality sector is stronger than ever and 2007 promises to be the third consecutive year of record growth. Copyright 2007 Floor Focus
That growth was primarily stoked by pent up demand in hotel refurbishment projects, which generally have a seven year cycle. When the market came to a sudden halt in 2001, it only added to the strength of the surge when business finally recovered.
The refurbishment cycle should have seen a peak starting around 2002, but the impact of 9/11 pushed it back. If the cycle still holds, business will begin to moderate over the next couple of years only to surge again perhaps five years from now.
Beyond pent up demand, the market is being driven by the growth of both business and leisure travel, new hotel models, the booming gaming industry—both here and abroad—and growth worldwide, particularly in emerging markets like China and India, as well as the Middle East.
For the full Hospitality Market story, see the April 2007 issue of Floor Focus Magazine.