financeHospitalityNet··1 min·For: Owner, GM, Investor, Revenue, Ops
US Construction Slump vs European Investment Surge
U.S. hotel construction continues a record 15-month decline while European investment volumes have surged to €27 billion. Meanwhile, industry experts are highlighting significant revenue leaks during the midday hours when rooms remain unoccupied.
Key Takeaways
- 1Monitor the 15-month U.S. construction decline, which is limiting supply growth to just 1.4% and favoring existing asset valuations.
- 2Note the surge in European hotel investment to €27 billion despite modest 2% RevPAR growth and lagging occupancy.
- 3Evaluate day-use or flexible booking models to recover revenue during the 4-6 hours daily when rooms typically sit empty between check-out and check-in.
Source: HospitalityNet
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