Hotel industry is seeing a surge in new occupancy from 2016, according to the industry association, as President-elect Donald Trump tries to turn his campaign promise of creating millions of new jobs around the country into reality.
Key points:The hotel industry expects to report record occupancy for the first time since 2009, according a survey of nearly 500 hotel operatorsOne in five new hotel guests in the U.S. is now a first time guestThe hotel sector has seen a 30% increase in hotel rooms during the past two yearsAccording to the Association of Hotel and Lodging Operators, hotel occupancy in the nation’s capital has risen by 15.2% since 2016, and is expected to hit 17.5% for the year ending March.
“We have witnessed a significant increase in occupancy in 2017,” said Michael Czajkowski, president and CEO of the Association.
“The number of new hotel rooms added has increased at a faster rate than in any year since the recession.”
The trend has been seen by other industries as well, with the number of people staying in hotels in the last month rising by 2.5%, according to research firm Experian.
Hotel occupancy in cities with the highest number of hotel guests rose by a similar rate.
While the hotel industry is benefiting from a stronger economy, the survey found that the economy is experiencing a significant slowdown in many regions.
For example, the number who say they have taken a vacation has dropped to its lowest level in five years, according for the most recent survey.
While most hotel operators and the hospitality industry are looking ahead to the new year, the report notes that the number and pace of the hotel openings has been slow for a number of years.
That is likely to change as the election season draws closer.
“As the presidential election draws closer, the pace of hotel opening is likely going to slow down, and we’ll start seeing more people stay in their rooms,” Czabkowski said.
The industry has been in a “fade” for several years now.
In 2015, hotel industry revenue was $11.5 billion, according the Association, down from $15.1 billion in 2015.
The industry is expected in the fourth quarter of this year to reach $17.9 billion, up from $16.9 in the third quarter of 2016.
Czajkock said that the downturn in the hotel sector is primarily due to a decline in demand for hotel rooms, which are the primary source of revenue for many hotels.
While demand for hotels is up in 2017, it is still lower than it was in previous years.
“The downturn in demand is really a result of consumers choosing not to go to hotels, and that’s a big reason for the declines in occupancy,” Czaajkowski said, adding that the industry has seen its average occupancy increase by 4.4% during the year, a decline of 6.4%.
For hotel operators, the slowdown is also affecting their ability to attract and retain guests, as the average stay for a first-time guest in the United States has increased by 1.5 days since 2016.
In the second quarter of 2018, occupancy in hotels across the country was down by 0.7%, according for Experian, the largest drop since March.
In 2017, the average first-stay stayed was up by 3.5%.
For hotels, there are several factors that can impact the average occupancy, including weather, demand for certain rooms, as well as the number, type, and type of rooms available, according Czaasick.
For example, while the average hotel occupancy rose slightly in February, it was only down slightly in March and April, the study found.
That’s because the weather was not as severe as in other months, Czajasick said.
There is also a drop in the number that stay at a hotel in general, the association noted.
There were 7.7 million fewer hotel rooms than there were in February and March.
In 2016, the National Association of Realtors reported that the hotel market saw a 3.7% increase, while in 2017 the industry saw a 6.9% increase.
The association noted that there were 8,000 fewer new hotel hotel rooms opened in 2017 than there had been in 2016.