CHICAGO and BROOMFIELD, Colorado – Hotels always recover from economic downturns, right? Wrong.
While it is true the U.S. hotel industry in aggregate has always rebounded from past recessions, this trend masks the fact that each cycle has winners and losers. Many hotels never recover. The U.S. hotel industry, on whole, has set new records for total revenue and average daily rate in each historical economic cycle since this data has been collected. The following figure illustrates this upward trend, showing aggregate U.S. hotel ADRs achieving new peaks in each of the past five economic cycles.