How World Economic Issues Are Affecting the American Hotel Industry
By Nitin Shah Chairman & CEO, Embassy National Bank | October 09, 2016
The good news is that globalization, cable news, the internet, and social media come together to give us instant and constant worldwide connectivity.
However, the bad news is that these same technologies make all of us interdependent like never before on economic, political, and social events around the world.
For hotel owners, the result is an industry that is more competitive, challenging, complex, and volatile -- and less predictable -- than ever. To demonstrate this, let's look at how current global economic developments are having an impact on four aspects of the lodging business in America:
1. Foreign investment in U.S. hotels and hotel companies
2. Foreign investment by U.S. hotels and hotel companies
3. Foreign travel to the U.S.
4. Foreign travel by Americans
Foreign Investment in U.S. Hotels & Hotel Companies
During the past 18 months, acquisitions of domestic hotels and hotel companies by foreign buyers have surged. This trend will continue, fueled by market factors that include: