Moody’s reports on recently released U.S. lodging and cruise data.
Key highlights include:
- Expectations remain stable for the industry, with Moody’s analysts anticipating adjusted EBITDA to grow 4 percent to 6 percent in 2017—a slower growth rate than the robust 9.4 percent adjusted EBITDA growth seen in 2016.
- Cruise capacity expansion will slow in 2017, with analysts expecting capacity expansion at only 3 percent following more than 6 percent in 2016
- Lodging supply will modestly outpace demand in 2017, fueled by the sizable expansion of the new hotel pipeline across all major hotel chains
- Hotel operators are set to trade price (room rates) to maintain occupancy, with occupancy rates pressured as new supply comes on board, result in hotel operators trading price to maintain occupancy
