2014 :
THE NEXT 12 MONTHS PROMISE BIG UPSIDE FOR SAVVY BRANDS AND THEIR INVESTMENT PARTNERS , especially those with a knack for reading macro and micro markets .
by ORIANA LERNER , CONTRIBUTING EDITOR
THE YEAR
OF THE
STRATEGIST
Hoteliers won ’ t need rose-colored glasses to get a clear view of the upside ahead for 2014 . Regardless of where they are located , both operators and investors should be able to find abundant opportunities to grow their brands and their profits over the coming 12 months . The catch is that they are going to have to focus . The big wins of 2014 most likely won ’ t be the sexy deals or the gold-standard markets . Secondary and even tertiary cities , mid-market development , rebranding in the 3- and 4-star sectors and tightly niched luxury projects will be vying for top honors as this year ’ s success stories .
No area has a monopoly on opportunity . Here ’ s an overview to see what ’ s hot , what ’ s not and where the action is by region around the globe .
THE AMERICAS
QUICK OVERVIEW : While the hotel industry doesn ’ t look likely to return to pre-recession giddiness any time soon , the market is looking especially hot outside established gateways . Despite the perennial appeal of a few major cities such as New York and San Francisco , most brands will be hitting the highways to secondary cities with universities , state capitals and even smaller destinations in need of a conference hotel or two .
Central and South America are also getting a lot of attention from international brands . More mature — and , in many cases , more stable politically — these markets are beginning to attract the attention of travelers who want a wider variety of hotel options . According to STR Global , 2,730 projects were in the pipeline as of July 2013 , with the biggest increases in upscale , upper upscale and unaffiliated hotels .
PERFORMANCE FORECAST : STR Global ’ s most recent forecast at press time projects 6 % U . S . RevPAR growth in 2014 . However , supply growth might put the cork back in the RevPAR bottle , cautions W . Chris Green , senior vice president of operations , Chesapeake Hospitality Management , Greenbelt , Maryland .
HOT AND COLD SPOTS : Industry insiders say most of North America is “ warm .” The red-hot markets tend to be off the beaten paths in many cases . “ As an example , in the U . S . the surging oil and gas markets in states like Pennsylvania , Ohio , the Dakotas and Texas are creating great demand for hotel rooms ,” says Bob Loewen , executive vice president and COO , Wyndham Hotel Group .
“ There is also growing interest in properties in college towns , specifically ones with multiple selling points like Columbus , Ohio , which has a strong corporate business presence and holds the seat of the state government ,” says Bob Habeeb , president and COO , First Hospitality
22 HOTELS December 2013 www . hotelsmag . com