Hotel Profits at Their Peak
An article in South Florida Sun-Sentinel reports that the typical U.S. hotel should see profits rise 14.9 percent this year, according to a new market study. The article by Tom Stieghorst quotes PKF Consulting of Atlanta as forecasting continued growth in per-room revenue this year, with rates in the top 52 markets rising an average of 4.7 percent and average occupancy rising 1.5 percent.
Thomas E. Callahan head of the PKF San Francisco office says, “Full-service hotels with restaurants, meeting facilities and amenities are most in demand because barriers to build them are high. That translates into higher profits over longer periods. Well-branded, full-service hotels in good condition located in major metropolitan or resort locations get the undivided attention of investors.�
This forecast also bodes well for the well maintained and luxurious vacation rentals which are in prime locations near good restaurants. As the luxury hotels continue to push up their prices and still enjoy high occupancy the need for less expensive alternatives increases. That is what VacationRental.org is all about. By consistently meeting the higher standards we advocate, vacation rental owners can enjoy the increasing profits that luxury hotels are enjoying
