For investors seeking higher income from the Hospitality sector, CBRE issued their U.S. Lodging And 2018-2019 Historic Hotels Forecast February 7, 2018. The outlook for the U.S. lodging industry, particularly historic hotels, which can include Bed & Breakfast properties above 8 rooms, continues to be extremely strong. The Historic Hotels Of America Annual Conference was held Sept 28, 2017.
For the fourth consecutive year, CBRE Hotels’ Americas Research presented a Historic Hotels of America – CBRE two-year forecast at the Historic Hotels of America annual conference. CBRE relies on historical hotel performance data from STR, and economic forecasts from CBRE Economic Advisors, to prepare its lodging forecasts. For a full summary of the report, please click here.
The report shows that since 2009, historic resort hotels have achieved greater revenue and profit growth compared to their contemporary counterparts.
The data strongly supports the idea that many consumers favor and will pay more for the unique hotel experience historic properties can offer.
Historic hotels can achieve a significant advantage in ADR and REVPAR versus contemporary hotels, especially when recognized as part of a set group or association such as the Historic Hotels of America. For the fourth year in a row, historic hotels inducted have realized a competitive advantage as well as a substantial premium with their rates, occupancy and RevPAR compared to other hotels.
Similarly, Bed & Breakfast properties can have similar attributes, offering unique draws for corporate and social events, such as weddings, which can drive profitability above limited and full service properties per square foot.
