Hotel industry is currently in the middle of its economic cycle. The industry tends to be strongly affected by macroeconomic conditions. When the U.S. slipped into recession in 2008-2009, the hotel industry slumped as well. As Turner (2010) notes, "trading volume fell sharply…lodging operating metrics of RevPAR and ADR deteriorated accordingly." While the economy recovery somewhat over the past couple of years, there are signs now that growth is slowing again. In particular, RevPAR declined in September (De Lollis, 2012). After an optimistic start to the year, the slow pace of economic recovery appears to be weighing on the industry. That said, because the economy is at a key juncture where it could begin to improve rapidly or it could slip back into recession, the hotel industry finds itself in roughly the same position.

Choosing the right type of hotel is important to its success. If the brand is going...
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