Experts Note Sluggish Hotel Growth, Downtick In International Travel Following Brexit Vote
Industry experts say hotels are experiencing a period of sluggish growth, some of which traces back to the Brexit vote.
Smith Travel Research CEO Amanda Hite told World Property Journal that hotels' slow performance post-Brexit may become the new normal, if stocks are any indication. Though they aren't soaring, US stocks aren't necessarily sinking either. The Baird/STR Hotel Stock Index reveals the sector was up 6.1% in July, and Amanda says most players are now focusing their efforts on average daily rate growth to drive profits.
Earlier this week Bisnow brought you four trends challenging the hotel sector, as outlined by Colliers International National Hospitality and Leisure Group practice leader Bryan Younge.
Bryan also says international travel to the US has suffered in light of the UK's vote to leave the EU.
"Whenever there is any sort of deceleration, it's due to a number of factors—a bit from economics and a little from Brexit," Bryan told us in that interview. "We noticed in the past months a little bit of a downtick in international travels to the US. But that might actually bounce back and potentially become a positive.”
While hotel stocks are experiencing slow growth, REITs are killing it. In July, the Hotel REIT sub-index enjoyed 10.3% growth. [WPJ]
