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Article: Valuation of the hotel industry
- Article from:
- Weekly Corporate Growth Report
- Article date:
- August 4, 1997
- Author:
CopyrightCopyright Quality Services Company Aug 4, 1997. Provided by ProQuest LLC. (Hide copyright information)
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Despite the fact that 1997 is turning out to be another record year for the hotel industry, there are potential developments on the horizon that could derail the current growth cycle. These include a significant new supply of rooms, a slowdown in the US economy anticipated within the next five years, and the possibility of a Wall Street retreat.
Looking Good in '97 Industry-wide profits have remained very strong through the first half of 1997, and are expected to equal or exceed the $105 billion record level that was set in 1996.
RevPAR (revenue per available room) is expected to increase by six to eight percent nationally this year also.
Meanwhile, occupancies in most segments and ...