The Hospitality Asset Managers Association (HAMA) has released the results of a wide-ranging survey of asset managers’ forecasts for the upcoming year in the hotel industry. With more than 110 participants, questions included RevPAR and ADR growth expectations and predictions on room service, free Wi-Fi and mobile check-in.
The survey was conducted in preparation for HAMA’s 2014 Annual Fall Meeting held in Miami, Fla. In total, 114 asset managers comprising more than half of membership participated in the survey.
“HAMA members are hotel asset management professionals responsible for proactively increasing asset values on behalf of hotel owners worldwide,” said Ruby Huang, HAMA president. “This group represents more than 3,500 hotels and resorts across every major brand, accounting for 775,000 hotel rooms, 250,000 employees, $40 billion in annual revenue and $3 billion in capital expenditures.”
The findings of the study show that:
- 52 percent believe RevPAR growth will be between four to six percent. An additional 39 percent believe RevPAR growth will be between six and eight percent.
- Nearly half (49.1 percent) believe RevPAR growth will be driven 80 percent by ADR.
- The vast majority (86.8 percent) believe that hotels will find alternative ways to operate room service.
- Free guest room Wi-Fi will be the norm within two years, according to 47.4 percent of those surveyed.
- Two-thirds (65.8 percent) think mobile check-in also will be the norm within three years.
- Nearly half (49.1 percent) believe that too many brands will be launched within the next year.
- The majority (66.7 percent) intend to make more or less capital expenditures for their hotel(s) in 2015 than 2014.
Respondents also identified several issues currently facing the industry. More than half (54.4 percent) felt that third-party commissions were the most concerning, and nearly as many (47.4 percent) voiced concern over the “rising cost of health care.” “OTA leverage” was cited as one of the top three issues by 43 percent.
“There is a continued desire for hoteliers to take better control of their own destinies, relying less on outside sources,” said Steven Nicholas, HAMA communications chair. “Government issues also continue to be an issue, as both rising health care and minimum wage potentially threaten bottom lines.”
