Hello Ladies and Gentlemen,
Nothing new here, just an update to statistics on forecasted opening, FYI. I have attached their earlier projections from July.
Key highlights:
1. Transaction volume in 2009 is expected to be just 25% of what it was at the peak in 2007, with selling prices down by 50%.
2. Pipeline guestroom totals are down 34% YoY and 11% QoQ
3. Approx 153K new rooms scheduled for 2009
4. Approx 112.6K new rooms scheduled for 2010
5. Approx 75K new rooms scheduled for 2011.
As we know, irrespective of what the statistics state, the real impact is if new supply enters into YOUR market. If that is so, declining rates mean little. If new supply in your market has been postponed or cancelled, then it has real meaning. No matter what the case, you have the advantage of forewarning in, whichever the case. That is the leverage to maximize.
Either way, new supply in your market requires a pro-active and aggressive response – a response that should start well in advance of the opening. You can mitigate some of this impact by a well planned and thoughtful series of steps that position you positively with your clients as well as strengthen the relationship you have with each of them. It does not have to be a devastating occurrence, merely a call to pro-active intervention.
Take care.
Nagib Lakhani
nagib@RevenueMaxConsulting.co
RevMax Hospitality Consulting Service
O: (425)677-7866 C: (425)445-7750 F: (866)508-7866
