Lodging 2017: Decreased Volume, Shifting Capital Sources

Alan Reay, left, said private equity is filling the gap left by other lending sectors pulling back from hotel construction.

DEL MAR, CA—With Chinese investors facing difficulty in getting their money out of the country and other headwinds the hotel industry is facing, sales volume is projected to decrease this year, but there is still opportunity, speakers at RAR Hospitality’s 10^th Annual Lodging Industry Forecast here Friday told the 153 attendees, a record-breaking number. The breakfast event was split into two panels: the first, an economic forecast and predictions on how the economy will affect the hotel industry this year; and the second, a look at evolving travel expectations and how the industry can meet them.

Bob Rauch, CEO and founder of RAR, moderated the first panel. He started off by saying the economy is strong, and we may have even just avoided a recession. “Brexit is not a big problem globally,” like many thought it would be, he said. “If the economy is good, lodging is good.”