April 8, 2016 8:56 am
For those of us who have been in this business long enough to experience numerous cycles, they all have similarities. Since the recession, we have come off several years of significant expansion, including escalating prices. Although we are emerging from a much deeper hole than past cycles, the expansion has been notable. I am often asked by owners, if we at at the top of the cycle, and what do things look like going forward. Based on past cycles, signs are beginning to appear that indicate a flattening of prices due to increased supply, performance issues related to various lagging business segments and tightening of credit markets. Those signs have occured in every cycle since the 80’s and foretold of a slowing in the expansion or at least the escalation in prices..
My observations are very similar to those espoused by panelists at the Hunter Hotel Conference, and published in an online article in HotelNewNow.
I would be interested to hear if anyone has the same perceptions or differing opinions.
http://www.hotelnewsnow.com/Articles/36836/Panelists-Supply-surge-affects-hotel-values-cap-rates