Positive signs for future of hotel industry

Dave Johnstone
Chief investment officer of hospitality, McWhinney, Denver

Despite the volatile nature of the oil industry, the national economy has gotten back on track over the past five years, which has resulted in a change in consumer behavior across the country. With a stable economy, consumers are now making more money, which allows them to spend more. An added benefit of this stability is the rise in leisure travel. Leisure travel, that is travel for pleasure rather than for business, has reemerged as a national trend, greatly benefitting states like Colorado that have a diverse offering for tourists and guests.

Colorado is consistently one of the most sought after destinations in the U.S., and in 2014, set state records for the tourism industry, with 71.3 million visitors spending $18.6 billion within our borders. In 2014, Colorado saw a 7.4 percent increase over 2013 in this spending, nearly 3 percent more than the national average of a 4.5 percent growth. Additionally, Denver trends are showing a 9 percent hotel valuation index growth in 2015, which outpaces the national growth of 7 percent. These statistics indicate that Colorado is outpacing the national tourism growth rates in every category. What’s most interesting is that 66 percent of the money spent was a result of lodging costs for overnight visitors.

Read the entire article in the Dec. 2-Dec. 15 issue of the CREJ.

Jennifer Hayes has been an editor with the CREJ since 2000. Jennifer covers multifamily and industrial news in the Denver metro area plus all property types in Colorado Springs, Southern Colorado, mountain towns and the Western Slope. She also handles High Fives news for the paper and is editor of the Health Care & Senior…