2009 saw many hotel companies open new properties or relaunch remodeled ones. With more than one hundred hotels from major brands scheduled to open across the United States, 2010 looks to be an even stronger year for openings. For the traveler, this is great news as a surplus of room inventory will be sure to keep prices down. That’s not such a good thing for the hotels. So why would they want to open so many hotels right now?
The answer, according to Mark Lomanno, president of Smith Travel Research, is that “hotel building cycles rarely mesh just right with economic cycles.”
Planning a new hotel can take two to four years, and construction an additional one to four years. Most of the hotels getting ready to open were on the drawing boards several years ago, when the economy was healthy, demand for rooms was strong, and room rates were rising quickly.
Of course, the opposite will also be true. Not a lot of hotels are being planned during the recession. That being said, everything should start to balance out in three to four years. In the meantime, now is your chance to get out there and experience some amazing savings as these new hotels fight for market share.
Get ready, get excited, and get packing!