• 2016 Lodging Industry Enjoys Positive Cycle

     
    POSTED July 24, 2017
     

The hotel industry’s performance during 2016 was solid in most Michigan markets and the year ended on a positive note, reports Charles Skelton of Hospitality Partners in Ann Arbor. The firm has tracked the state’s lodging sector performance for years.

“We are at the point in our cycle where gains in occupancy will be much slower while rate will continue to increase, but at a more reasonable pace," says Skelton in his firm’s spring/summer newsletter released earlier this month.. "I think 2017 will be a solid year with softening coming in 2018 and 2019. To what degree that softening takes place really depends on what happens nationally."

Detroit’s renovated Cobo Convention Center is receiving rave reviews, Skelton adds. “Coupled with the sports teams, bars and restaurant activity, and the newly arrived residents, the D is heading into the century reclaiming some of its glory as the 1940s and 1950s when it was truly a world-class city and an engine for the Midwest.”

Remote working has become mainstream with the continued presence of COVID-19. While many people have welcomed the new normal of working from home, others miss the separation of spaces, as many corporate offices have remained closed since March. Without the daily obligation to go into the office, professionals have the ability to travel more freely. Hotels across the country are creating “work from hotel” deals–a play on “work from home”–so people can explore new places while still fitting in their 9 to 5.  

 

Due to COVID-19, non-essential travel was, or has been, banned for months. Long anticipated trips and in-person gatherings were canceled and people have adjusted to the new normal: staying at home and meeting over Zoom. However, states have been slowly lifting restrictions, and non-essential travel will soon be happening across the country again. However, some may not be as comfortable with the thought of traveling as they were before the pandemic.