Los Angeles Los Angeles

The hotel market is poised for a healthy year. Coming off a relatively strong 2017, the hotel market is expected to see strong demand, fueled by strong employment and low new construction. Hotel rates, however, are going to continue to be anemic. Carter Wilson, VP of consulting and analytics at STR, expects to see 5% rate growth this year, which he knows will “be a disappointment” to some. Still, the hotel market is healthy, and Wilson says that he remains bullish.

“The hotel economy is tied to the overall economy, and the overall economy is firing on all cylinders right now,” Wilson explains. “We effectively are at full employment and we have strong consumer confidence and estimates keep increasing. That all bodes well for hotel demand. We had strong demand growth in the third and fourth quarter last year. Rate growth, however, seems to remain anemic, and this year, we expect to see 5% rate growth.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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