NEWS

RECORD-BREAKING US HOTEL INDUSTRY: HEALTHY THROUGH 2009

The US hotel industry had another record breaking year in 2006 and anticipates remaining healthy through 2009.

Records were set when the industry generated $133.4 billion in total revenues and $26.6 billion in profits, according to stats compiled by Smith Travel Research.

Randy Smith, owner and founder of STR, stated: "Profit margins increased to almost 20%, up from 18.4% last year. It is also worth mentioning that of the $10.7 billion in additional revenues the industry generated, over $4 billion flowed thorugh to the bottom line."

Although construction pipeline numbers have increased, it seems construction time has lengthened. Additionally, new supply is regionally distributed and only a few major cities face potentential overbuilding.

Smith added, "Fueled by this increase (in supply), 2007 will mark the first year that industry ADR breaks $100, another milestone in the industry's history."

-Summary derived from original report by David Wilkening