JHGI Conversations

Tony S. wrote:
What hotel market price segments, geographical areas and
hotel size will be planned and developed during the next 3-5-10 years.

The panel addressed this in more detail, but I will had a few additional comments. The major franchisors are going to continue to promote all of their brands so I think we will continue to see them proliferate on all levels even with direct market impact on the existing brand inventory. The 4 and 5 Star properties will be difficult to finance for the foreseeable future even with the markets being awash in capital. The more expensive projects will have to underwritten combined with other uses such as timeshare, condos or water parks to be feasible. Much of the product going forward will have to be custom designed and purpose built to satisfy consumer demand and demographic trends. This will mean more new construction and less redevelopment overall in our opinion.