HOTEL

 ASSOCIATION  –  OUTLOOK  

Quarter  2  

 
Market  Indicators  

Negative:  

! While  showing  significant  improvement,  the  general  economic  condition  is  still  below  that  
of  two  and  three  years  prior.  
! All  segments  continue  to  be  value-­‐conscious  but  are  willing  to  pay  more  for  hotels  whose    
facilities  are  clean  and  in  good  condition.    
There  appears  to  be  only  slight  ADR  growth,  in  the  range  of  2-­‐3%  
!
 
                           Positive:  
 
! The  new  legacy  air  carrier  and  discount  airline  are  now  fully  operational.  This  is  expected  to  
impact  both  the  leisure  and  business  segments.  
! The  new  regional  tourism  promotional  budget  is  fully  deployed  and  is  expected  to  show  
measurable  results  this  quarter.    
! Members  continue  to  report  an  increase  in  Requests  for  Proposals    and  contract  business  
! The  new  civic  center  will  open  in  June  with  a  full  program  of  cultural  and  sporting  events.    
! There  is  continuing    demand  for  small  groups  of  less  than  15  rooms  for  family  and  social  
events,  especially  on  weekends.    
 
Hotel  Supply  

! No  new  hotel  construction  permits  have  been  issued  for  this  year.  
! Application  for  permits  for  hotel  refurbishment  and  building  improvements  are  on  the  rise.