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Recession Prep: Hotel Investors Are Checking Out Early

National Hotel

Despite some of the best lodging fundamentals in years, hotels are checking out of hotel stocks in yet another development that could signal a broader industry downturn. 

Lodging industry shares dropped 22% in 2015, and have tumbled another 19% since January, nearly doubling the broader market's drop, the Wall Street Journal reports. 

The plunge comes in spite of solid industry performance across the board; occupancy's at 66%, an all-time high, while 
RevPAR projections for 2016 are expected to grow 5.5%.

Yet investors remain concerned about the long-term viability of the industry, especially in the current economic climate. Without long-term tenants (and revenue) locked in, lodging is often the first industry to feel the pinch of an economic downturn. [WSJ]