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2016 Outlook for Global Hotel Industry

2016-01-05

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The 2016 outlook for the global hotel industry is Stable as favorable travel trends and stable financial policies should allow most issuers to operate within Fitch's rating sensitivities, according to Fitch Ratings.

 

"Middle class growth in emerging markets, relaxed barriers to visitation by some important destination countries, and growing consumer preferences for experiential rather than material purchases, means hotel RevPAR growth is here to stay for another year, despite some new and familiar risks to the sector," said Stephen Boyd, Director of Lodging and REITs at Fitch Ratings.

 

The largest risks to Fitch's outlook include geopolitical events that reduce travel demand, corporate reorganizations like M&A and divestitures, and an unanticipated industry downturn with severe RevPAR declines. The rapid growth in online alternative accommodation websites also warrants closer scrutiny.


(Read more at: Ehotelier.com)