CHICAGO: 2014 Forecast Even Hotter
Reports of the hotel market's health are not greatly exaggerated, Property Valuation Advisors' Brian Flanagan (snapped with the kids in West Yellowstone, Montana) tells us. Average daily rates should continue to climb while occupancy will stay about the same, he predicts. (A lot of people want to use towels that aren't their own.) The biggest stories will be the shiny new product dotting the skyline, which could have a detrimental effect on existing hotel supply. But the past couple of years have treated hotels well, so they should have the money to catch up property improvement plans. All segments of the market are trending up, but the future's looking especially bright for luxury players. "They've hit a point in time where they feel they can really start cranking rates," he tells us.
