Source: Hotel Management
By Alicia Hoisington
February 19, 2019
The United States hotel industry has been operating at peak levels for the past three years, and CBRE researchers said that this year won’t stray from that trend. What’s more, sales volume for hotels should look much like last year’s levels. Additionally, CBRE expects overall returns on hotels to be the highest of any commercial real-estate sector over the next three years. And even rosier, the firm does not expect a recession this year.
Much confidence is coming from a U.S. economy that appears to be holding steady, albeit down slightly due to impacts from tax cuts, according to research conducted by CBRE in its “2019 U.S. Real Estate Market Outlook.” Gross domestic product is forecast to grow 2.7 percent in 2019, which is only slightly lower than 2018’s growth of just under 3 percent. That level is still above the GDP growth average the U.S. has seen from 2014 through 2017 (nearly 2.4 percent). Many economists consider the ideal GDP growth rate to be between 2 to 3 percent.
Here are some things to keep in mind we move through the year.