Economies of the world have grown dependent on each other. Not only has the onset of globalization created a mini global village but it has also given a boost to the services sector and the hospitality industry.
Be it recession, inflation or boom, businessmen still travel all over the world hoping to put together their broken pieces of failed strategies or showcase the successful ones. The increasing need to internationalize and reach out to a wider range of audience has augmented the commercial industry of hotels and their services.
During the past few years of economic and real estate gloom, the commercial hotel industry took a back seat. The traveler accommodation industry struggled to tread murky waters during 2009-10. However, the condition was not as bad as it looked. It was never the underdog.
According to NBC, the sector was the least recession hit industry. The percentage change in sales that the hotel industry recorded was around -0.23 percent, which was a lot lesser than other sectors like the publishing and construction material industries.
America
As the economy revives slowly albeit steadily, the hotel industry growth has picked up speed. The global hotel sector generated around $457 billion in 2011, one-third of which was contributed by the U.S. market alone.
In a report analyzed by the American Hotel and Lodging Association (AHLA), in 2011, the lodging industry raked in 20 percent more revenue, around $21.6 billion, in pre-taxed income. This was the highest percentage change in the past decade. Reports of 2012 will be available only by mid 2013.
China
While the American hotels are reigning high, Chinese investors are also spreading their wings. China is currently increasing its hotel investment activity in Kenya. The Chinese business travel spending is also expected to go up by 25 percent in 2013.
Europe
Foreign investment in Europe has also increased. Average Daily Rates (ADR) of room occupancies saw the highest increase in the past five years. However, the ailing economy is slowing down the growth in the continent. Check out an interesting survey on the hotel industry of Europe by DLA Piper.
Expansion Plans
Hoteliers have also started investing and expanding vigorously. Renovations are being undertaken and sale contracts are being signed every day. Recently, InterContinental Hotel Group announced plans of extensive expansions in the Asian region and it already has a total of 1098 more worldwide hotel building plans under the pipeline. Hilton Worldwide has plans of opening another 906 hotels around the world and Accor Hotels plan to add 609 hotels to its existing inventory portfolio.
The positive signs and optimistic outlook will take the hotel industry to new highs. The industry has been and will be a consistent and sustainable sector in the coming times.