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Hotel Demand Holds Steady as Revenues Lag

Yet Ten-X sees more gainers than losers nationally in its latest hotel “heat map,” and rates Orlando as the top “buy” market for lodging investors.

Exterior of resort hotel The Hilton Disney Springs near Orlando. Ten-X rates the Florida resort city and life sciences hub as the nation’s top “buy” market for hotel investors.

IRVINE, CA—The hotel outlook heading into 2018 is decidedly mixed, judging by Ten-X’s latest outlook report on the sector. Although hotel revenues haven’t kept up with GDP growth for the past six months, the demand backdrop remains healthy as continued economic expansion pushes consumer spending in the lodging sector to new heights.

Overall, the story is one of deceleration rather than decline. Ten-X notes that occupancies held steady at 65.6% in the third quarter, up just 30 basis points year over year. Citing STR data, Ten-X says that ADRs rose just 0.3% from Q2 and 1.3% from Q3 2016, for the slowest annual growth rate seen this cycle.

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Paul Bubny

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

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