Good news for customers this RFP season as STR hints pending hotel slowdown

Travel News 21 Oct 2016

According to Business Travel News, in less than two weeks, major hotel companies will release earnings for the third quarter. The September's Baird/STR Hotel Stock Index paints a grim picture of what's to come for the U.S. hotel industry. The index dropped 6.4 percent during the month, falling behind the S&P 500, down 0.1 percent, and the MSCI REIT real estate index, down 2.5 percent. "As we enter the final months of 2016, the U.S. hotel industry is bracing for a slowdown in demand growth and an acceleration in the number of open hotels," said STR president and CEO Amanda Hite. Though revenue per available room has yet to turn negative during any month in 2016 (September results have yet to be released by STR), the flattening of occupancy has created concern around hotelier pricing power, according to Hite. "Investors are clearly underwhelmed by the most recent and expected future performance, and the stock prices in September reflected that."