Hospitality Expects Strong Revenue Growth

NEW YORK CITY-Across the country, the hospitality industry is expected to continue the trend of the last few years and have strong revenue growth in 2014. Although 2013 was a good year for hotel owners, operators and managers, early signs indicate that this year will be even better. Many industry insiders also predict this growth will continue well into 2015.

A recent report by PKF Hospitality Research supports the conclusion that there will be increased hotel revenue in many locations across the country. The reason for this rise is based largely on a shrinking supply, rather than the anticipated demand or the ability of operators and managers to charge higher rates. Urban markets and particularly hotels in the gateway cities such as New York, Boston, Philadelphia, Miami, San Francisco, Los Angeles and San Diego will see extraordinary growth as a result of increased domestic and international tourism and the limited amount of construction since the start of the recession in 2008. In contrast, Midwest cities will see less growth due largely to the region’s lagging economies. Nevertheless, every market across the country is likely to see some growth, with the greatest percentage in the gateway cities.