Hotels are doing better than ever. More rooms have been occupied in 2018 at higher rents than ever before.
“We are at peak performance—and we don’t expect that to change much,” says Jan Freitag, senior vice president of lodging insights for research firm STR.
Hotel owners still worry about the rising costs to operate their businesses, however. Even though the average revenue produced by hotel rooms is likely to keep rising, room rates are not growing as quickly as the cost of operations.
“The name of the game is cost control,” says Freitag.